- A full-blown cross
- Falling like a dead weight in the sky
In the recent correction, the cross seems to have found support at the parallel support zone finds between 0.9144-0.9100 levels. On the monthly chart, the given support zone coincides with the 200EA and so far, the price action traced out a triple bottom pattern. Since August 2013, the price held the support zone and produced a decent rally.
The daily RSI has rebounded from oversold and currently reading at 40, and the oscillator is remaining bullish. The near-term bias is expecting to stay positive within a range as long as the price is holding 0.9100, which had earlier acted as a strong support level.
At the higher end of the current range, a sustained trade above 0.9200 may induce a rally towards 0.9390 and even 0.9600.
What if the price lost 0.9100?
On the daily and weekly chart, the corrective A-B-C Structure Points to 0.8980, coincides with the 50.0% fibs (0.7160-1.0780 rally)
Whereas on the monthly A-B-C corrective structure is pointing at 0.8750.
View: In Q3, the focus remains between 0.9150-0.9100 levels below here, wait for 0.8980 and 0.8770 it’s a corrective C wave.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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