So we had a break of the weekly trend line with the US dollar.
The dollar has been making consecutive higher highs and lows.
Extremely bearish weekly candle, broke through the trend line without flinching. No wicks.
This is letting us know there was a big sell off last week.
We need to look for the reaction of this break. As you know the US dollar is a big influence on the market. So anything we see here is going to effect correlated pairs.
Tomorrow will be important to see if we are going to continue heading lower, or are we going to pull back with a retest and continuation or even a complete fake out back to the upside. We need to wait to see if we are going to find support or if we are going to keep melting to the down side.
I do see multiple confluences for a retest of the previously broken trend line.
Patience will be extremely key this week. Keep in mind we did have an externally bearish weekly candle, but nothing is absolute in the forex market only the adaptable survive. You have to maintain an open mindset and not get married to one market outlook.
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