The pair reached the support for the descending channel organizing the downside correctional wave which started with the brea ch of the support for the general upside trend, starting from the recorded top at 0.9148.
After reaching the support at 0.8065 the pair rebounded to the upside and heading to retest the breached neckline at 0.8400 which meets with the resistance for the channel; as the pair nears the resistance momentum indicators are starting to show overbuying pressure seen on Stochastic, and we see that it supports the pair to resume the downside wave.
The facts mentioned above, and breaching the main downside correction at 61.8% and 76.4% and stabilizing below the 200 Days MA support the bearish expectations targeting mainly 0.7690.
The targets for the bearish pattern have not been fully acquired, though at the same time breaching the resistance areas among 0.8400 – 0.8500 and stabilizing above them weakens the bearish scenario.
Yasir Mubarak
Senior Technical Analyst
[email protected]
www.ecpulse.com