The bearish close and break of LT trendline on Monthly tf has
been followed by a correction and retest of that break out level,
i e 1,2780. Thus, technically, price could now proceed lower.
Currently on H4 chart we can see the forming of a Butterfly
with a completion point close to 1,23 (or 1,272 level at 1,2420)
Price has just close below the weekly PP and is now testing it
from below. A TL has also been broken, both which are signs
of exhaustion in this correction, to that added that the last high
missed the previous one. I don't regard harmonic patterns within
the XA range, because they are notoriously unreliable (thus
the potential Gartley is disregarded). Also ABCD patterns that
have B and D levels in close proximity are also less useful in my
book but the CD leg is marked in the chart with a red line from
the C level. All in all, downside is favoured, An upside rally
should be capped below 1,30.
been followed by a correction and retest of that break out level,
i e 1,2780. Thus, technically, price could now proceed lower.
Currently on H4 chart we can see the forming of a Butterfly
with a completion point close to 1,23 (or 1,272 level at 1,2420)
Price has just close below the weekly PP and is now testing it
from below. A TL has also been broken, both which are signs
of exhaustion in this correction, to that added that the last high
missed the previous one. I don't regard harmonic patterns within
the XA range, because they are notoriously unreliable (thus
the potential Gartley is disregarded). Also ABCD patterns that
have B and D levels in close proximity are also less useful in my
book but the CD leg is marked in the chart with a red line from
the C level. All in all, downside is favoured, An upside rally
should be capped below 1,30.