Monday’s close confirmed the short term trendline break, and it was another attempt at pushing beyond the prior wave (iv) low. Tuesday’s reversal bar, a bearish engulfing pattern from resistance put a damper on the bullish action, but there wasn’t much of a spirited decline. In my view, the action down from this week’s high looks corrective, and a larger B wave remains the call. A break back below the down trendline of off the wave (iv) end would mean bears were still in control and to prepare for new lows.
We have some clear levels to watch next week. Certainly a push above the short term down trendline will turn us bullish against Friday’s low, so similar to AUDUSD, we’ll be watching this pair closely early in the week. A drop below Friday’s low, while not completely bearish, would set up a test of the up trendline. RSI’s push into sustainable bullish territory allows us to be bullish on shorter term timeframes, although nimble is probably still the best strategy. Given that former resistance becomes support, a push above this week’s high will allow for a push towards wave (iv)’s extreme, if not higher.
Read more on the TraderSkillset website | Currencies At a Crossroad | http://traderskillset.com/crossroad/
We have some clear levels to watch next week. Certainly a push above the short term down trendline will turn us bullish against Friday’s low, so similar to AUDUSD, we’ll be watching this pair closely early in the week. A drop below Friday’s low, while not completely bearish, would set up a test of the up trendline. RSI’s push into sustainable bullish territory allows us to be bullish on shorter term timeframes, although nimble is probably still the best strategy. Given that former resistance becomes support, a push above this week’s high will allow for a push towards wave (iv)’s extreme, if not higher.
Read more on the TraderSkillset website | Currencies At a Crossroad | http://traderskillset.com/crossroad/