The 38.2% correction held against the pair’s downside correctional attempts as seen on the daily chart below. The pair rushed to the upside to retest the breached neckline for the bearish pattern at 0.8605.
The pair attempted to settle above this breached neckline due to negative pressures from the 50 Days MA accompanied now with a negative crossover on Stochastic from overbought areas which is why we see the pair destined to continue the downside correction presented in our previous reports.
We see downside movement over short term basis targeting 38.2% correction at 0.8105 in an attempt to breach it to the downside targeting 0.7705 the 50% correction.
Despite of the negative signals we should note that breaching 0.8865 will carry the pair into the upside wave again without the need for the downside correction.