Consolidation before extended move downwards
EURUSD has been trending downwards for a while now and reached a long term support level around 1.17121. The current bounce upwards seems merely a short term correction and I'm expecting some consolidation at the current level which is right in the Fibonacci 'goldilocks' zone from the latest move downwards.
From here, price can continue to rise towards 1.19722 level which will be another inflection point, or we see the downwards move continuing which will most likely create a retest of the most recent low and possible a test of the lower trendline of the LT upwards sloping channel that has formed since the beginning of the epidemic.
For now, no action and see how price reacts inside the current zone.
Note: both price and RSI are moving parabolic upwards, lets see how long they can keep going like this before even thinking of going short.
From here, price can continue to rise towards 1.19722 level which will be another inflection point, or we see the downwards move continuing which will most likely create a retest of the most recent low and possible a test of the lower trendline of the LT upwards sloping channel that has formed since the beginning of the epidemic.
For now, no action and see how price reacts inside the current zone.
Note: both price and RSI are moving parabolic upwards, lets see how long they can keep going like this before even thinking of going short.
Commentaire:
We're close to the bottom trendline that is part if the upwards sloping channel that we are in since the beginning of the epidemic.
