THE BIG PICTURE: Something that jumps out is the seemingly sideways development of this pair going back to the early nineties. Price has been relatively constrained between extremes where point A broke the previous extreme but point B held above the previous low. Point A broke above the previous high by about 3% while the low at point B came down to within almost 5% of the low going back to the turn of the century. Measuring the segment AB provides a 61% retracement level just above 140 that has proved to turn price lower. This can be confirmed with the swing failure which took place at point C
THE TECHNICAL STANDPOINT: Point C provides implications for more downside pressure. The 61% fib level combined with the failure of price to trade higher than that level shows signs of more weakness to come. Switch to lower time frames to focus on the short side and ignore the long side unless price moves back above the fib level.
THE TECHNICAL STANDPOINT: Point C provides implications for more downside pressure. The 61% fib level combined with the failure of price to trade higher than that level shows signs of more weakness to come. Switch to lower time frames to focus on the short side and ignore the long side unless price moves back above the fib level.
