The break of the up trend line (thin) after the divergence is the sign that the trend is reversing and the main trend is now the downtrend. (the previous divergence analysis on this chart :
)
At the end of the week this pair bounced right at major support 1.289 and i'm expecting a pull back to somewhere around 1.2985-1.3 before continues to go lower.
In the chart above if the pullback scenario can't go beyond 1.3 there's a possible Head and shoulder pattern in this 4h chart that makes the downside target lower than the previously expected. while a break above 1.303/04 (previous minor support) we may have a ranging market with 1.2985-1.304.
Some analysts suggest that this pair may found a selling pressure around 1.301/02
Next week important events are :
1. Germany ZEW Economic Sentiment ( Dec 11 )
2. Fed Interest Rate Decision ( Dec 12 )
3. ILO Unemployment Rate ( Dec 12 )
4. Swiss National Bank Labor Rate Announcement ( Dec 13 )
5. US Retail Sales ( Dec 13 )
We also have European Council meeting on Dec 13
At the end of the week this pair bounced right at major support 1.289 and i'm expecting a pull back to somewhere around 1.2985-1.3 before continues to go lower.
In the chart above if the pullback scenario can't go beyond 1.3 there's a possible Head and shoulder pattern in this 4h chart that makes the downside target lower than the previously expected. while a break above 1.303/04 (previous minor support) we may have a ranging market with 1.2985-1.304.
Some analysts suggest that this pair may found a selling pressure around 1.301/02
Next week important events are :
1. Germany ZEW Economic Sentiment ( Dec 11 )
2. Fed Interest Rate Decision ( Dec 12 )
3. ILO Unemployment Rate ( Dec 12 )
4. Swiss National Bank Labor Rate Announcement ( Dec 13 )
5. US Retail Sales ( Dec 13 )
We also have European Council meeting on Dec 13