1. EU has formed a Double Bottom as it rejected off 1.09300 region with strong Bullish Momentum.
2. Then price consolidates into a Triangle pattern as the buyer and seller fight to decide a direction. On Friday, price broke to the downside of the Triangle at near the close of the session.
3. Following the break, price has retested the previous support on Psychological Support 1.1 level and found some buyer there as it consolidates into an Inside Bar Pattern.
4. However we need to be mindful that the pattern formed during the end of the trading week thus the volume is generally lower and more likely to consolidates.
5. So what I will be looking for now is a retest of the broken Triangle pattern which has confluence with the dynamic resistance EMA 14 & MA 50 to confirm the break of the pattern and for further sign of bearish continuation.
6. A break of 1.1 level will form a new Lower Low which indicates price could potentially push lower to retest the previous low at the Double Bottom.
7. Alternative Scenario. IF price failed to found sufficient seller to confirm the break of the triangle pattern, price could rebound strongly above and potentially form a new Higher Low. Or if price found further support on 1.1 level, it could potentially found further buying pressure to push higher to rechallenge the resistance for further upside push.
2. Then price consolidates into a Triangle pattern as the buyer and seller fight to decide a direction. On Friday, price broke to the downside of the Triangle at near the close of the session.
3. Following the break, price has retested the previous support on Psychological Support 1.1 level and found some buyer there as it consolidates into an Inside Bar Pattern.
4. However we need to be mindful that the pattern formed during the end of the trading week thus the volume is generally lower and more likely to consolidates.
5. So what I will be looking for now is a retest of the broken Triangle pattern which has confluence with the dynamic resistance EMA 14 & MA 50 to confirm the break of the pattern and for further sign of bearish continuation.
6. A break of 1.1 level will form a new Lower Low which indicates price could potentially push lower to retest the previous low at the Double Bottom.
7. Alternative Scenario. IF price failed to found sufficient seller to confirm the break of the triangle pattern, price could rebound strongly above and potentially form a new Higher Low. Or if price found further support on 1.1 level, it could potentially found further buying pressure to push higher to rechallenge the resistance for further upside push.