This pair has repeatedly failed to make higher highs starting from the first one at 1.66156 level. This was the weekly high from 2009, and prices moved impulsive to the level, but never even made it before coming back down. After finding support, the pair tried to hit the same level again, this time only making it to 1.62490 which was the most recent high made by the first attempt to hit 1.66156. Again price came down to the same support level to bring prices higher. The fact that price could not break 1.5591, shows me that this is another failed attempt at a higher high, and this will bring prices lower back into the main support level. In addition, there is a double top showing strength in the resistance level. I am expecting price to make its way down to 1.52 to find minor support, and then down to the support level at 1.4445.
Comment:
Upon looking at this further at the lower TF, and seeing the gap up at the open, it is apparent that this is a 20EMA squeeze. We could possibly see prices push higher to test the 1.62 level again. The two touches of the top and the 3 touches on the bottom are also creating a higher timeframe range, for possible moves higher.
Comment:
Looks like price is in a corrective box structure, and is being held up by the daily TF 20EMA. A possible breakout to the upside is possible, so I'm still going to stay away from the original idea of going short, and look for breakouts to the upside for a long.
