Lower highs and Lower lows broken sequence broken? Even though we’ve seen price bouncing higher from the recent low of 1.5175, unable to test the previous swing low around 1.5155, it is still too early to tell. Why? Should price be able to fall off from current levels and head lower back below 1.5155, current rally can still be interpreted as part of the “down cycle” starting from 1.5325 swing high yesterday. An invalidation of the downtrend would preferably see price breaking higher above 1.528 which has been acting as a strong support/resistance as recent as last Thu/Fri.
From the daily chart, we can see 1.528 gaining further importance; providing support back in Nov – Dec ’12, and turning point back in 13th Sep ’12. An Evening Star candlestick pattern is seen just along 1.528, underlying bearishness from the daily chart perspective. However price has bounced higher, demonstrating strength of 1.518 support which is incidentally 15th Nov ’12 lows. As we’re currently already undergoing a Triangle bearish breakout, another confirmation of 1.528 resistance holding will help accelerate bearish momentum for a potential break below 1.518 and finally 1.5155 from the Hourly Chart.
More Technicals Analysis:
SGP / JPY Technicals – Extreme Stochastic Readings Hints of Pullbacks
EUR / USD – Runs into a brick wall at 1.3400
GBP / USD – Trading back below the significant level of 1.6150
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