27 Nov 2014



After breaking out of the box range yesterday the rate is making a recovery. The move should be capped by the old range support becoming the new resistance and a falling short term trendline at around 1.0910.

A rejection from this level would confirm the validity of the downside break and should take the rate down to test the rising trendline around 1.0750 and the range breakout target at 1.0537.

A break of the trendline back above the range, however, would indicate a false breakout and should take the rate back up to test the range resistance at 1.1300 in the coming weeks.


The rate was rejected from the range resistance at 1.4702. Divergence on RSI indicates the rate is heading down to test the range support at 1.4235.

A close above the 1.4700 level would invalidate my bearish outlook for the pair and should take the rate up to test the long term falling trendline around 1.5000


The rate is currently testing the support at 0.7900 level. As the RSI bearish momentum and the short term falling trendline is still intact I am looking for a break of the support level, which should further take the rate down to test the triange support at around 0.7820.

Any upside moves should be capped by the old support/new resistance at 0.7955, however a break above this level would indicate the rate is ready for another test of the triangle resistance around 0.8220 level.


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