10 Dec 2014



The rate has reboundend from the falling trendline and with the bearish RSI momentum still intact, I am inclined to believe the rate is going to continue lower. A break below 0.7890 should take the rate down to test the previous lows at 0.7850 and possibly the symmetrical triangle support around 0.7835.

A break above 0.7930 should take the rate up to test the 0.7975 and possibly the triangle resistance around 0.8000.


The rate has formed something of a double top formation at the long term falling trendline resistance. A break below the neckline at 1.4865 should take the rate down to test the old resistance/new support at 1.4760 and the old box range resistance at 1.4700.

This is also acts as a possible right shoulder to a massive head and shoulders formation on a weekly chart. I would have liked to see the rate test the huge psychological resistance at 1.5000 before heading down so only a daily close above this level will invalidate my bearish bias for the pair.


The rate is ranging between 1.0858 and 1.0759 right at the rising trendline dating back from January, which indicates that rate could be bottoming out.

A break above the range resistance would confirm my bullish bias and take the rate up to test the old support/new resistance at 1.0932. A break above this level is needed to target this year's high at 1.1300.

A break below range support should take the rate down to test the yearly low around 1.0500.


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