The monthly chart now shows a “Gravestone Doji” formation.
- It was very essential for the bulls to ensure the spot stayed above 1.1534 levels. However, not only the pair retreated from a high of 1.1616, but it also fell below 1.1534 levels on closing basis and printed a low of 1.1418 levels.
- Failure to sustain above key zone of 1.1436-1.1534 levels despite rising to 1.1616 indicates the currency pair could be heading lower to 1.12 levels.
- The move may not happen in a day or two; although probability of such a drop in high if tomorrow’s US wage growth figures are strong.