The pair has started recovering from the previous sharp drop on Dec 9th, and managed to get very close to the 50% retracement level (1.8655) twice. The first was on the 14th of the month & the second on the 20th.
Following the 2nd attempt, the bulls gave up, and the bears used that to lower the key retracement to 1.8608. The price behavior for the last 10 days has confirmed that this is the resistance to watch. The bulls tried to overcome it several times in the past 20 hours or so, without success.
The rejection from 1.8608 pulled the price lower to 1.8550, dropping below the MA35/49 band in the process, confirming that weakness is probable for now.
Still, we do have a significant support at 1.8545. This level is provided by yesterday lo, which is also extremely close to the rising trendline from Dec 23rd lo. In case the bears can pull the price below this support, they would gain further ground, and signal their seriousness about pulling this pair lower, maybe even much lower!
My measured move target for the expected drop is 1.8112.
However, 1.8655 is now a key resistance to this outlook, and in case the bulls perform a surprise comeback, pushing the price above this level, then the expected weakness will no longer be expected!
Good Trading & Good Luck!
Munther Marji CMT
Following the 2nd attempt, the bulls gave up, and the bears used that to lower the key retracement to 1.8608. The price behavior for the last 10 days has confirmed that this is the resistance to watch. The bulls tried to overcome it several times in the past 20 hours or so, without success.
The rejection from 1.8608 pulled the price lower to 1.8550, dropping below the MA35/49 band in the process, confirming that weakness is probable for now.
Still, we do have a significant support at 1.8545. This level is provided by yesterday lo, which is also extremely close to the rising trendline from Dec 23rd lo. In case the bears can pull the price below this support, they would gain further ground, and signal their seriousness about pulling this pair lower, maybe even much lower!
My measured move target for the expected drop is 1.8112.
However, 1.8655 is now a key resistance to this outlook, and in case the bulls perform a surprise comeback, pushing the price above this level, then the expected weakness will no longer be expected!
Good Trading & Good Luck!
Munther Marji CMT