Price pulled back last week after hitting the breakout level of the
major Bear Flag around 1,1050. It also found support by the
1,08 level (Yearly S2, 23,6 Fib, Horizontal Support).
Oftentimes after a broken channel of a Bear Flag, price will come
back and test, either the breakout level or the channel itself.
In the chart we can see how the lower channel is aligned with the
lower Kumo Cloud and Monthly R2/ 61,8 Fib, at 1,1220-60.
This is the Strong resistance level this week, above the
1,10 level. Important resistance below that is the 50% Fib/
Kijun Sen confluence at 1,1115.
A breakout below current low at 1,0795 will expose previous
low at 1,0520 and will also signal possible further losses in line
with the major Bear Flag pattern, and thus a taking out of the
multi year low, aiming for parity and below (targets on Monthly
Study)
Bulls will want to see a return inside the Bear Flag and a close
inside the Kumo Cloud to find footing for further gains.
Note that, it is not just the Bear Flag pattern that is in play
but also the Kumo Cloud Break Out signal that appeared in
mid October, were trend followers could add to short positions with a stop
above the 1,1712 high.
major Bear Flag around 1,1050. It also found support by the
1,08 level (Yearly S2, 23,6 Fib, Horizontal Support).
Oftentimes after a broken channel of a Bear Flag, price will come
back and test, either the breakout level or the channel itself.
In the chart we can see how the lower channel is aligned with the
lower Kumo Cloud and Monthly R2/ 61,8 Fib, at 1,1220-60.
This is the Strong resistance level this week, above the
1,10 level. Important resistance below that is the 50% Fib/
Kijun Sen confluence at 1,1115.
A breakout below current low at 1,0795 will expose previous
low at 1,0520 and will also signal possible further losses in line
with the major Bear Flag pattern, and thus a taking out of the
multi year low, aiming for parity and below (targets on Monthly
Study)
Bulls will want to see a return inside the Bear Flag and a close
inside the Kumo Cloud to find footing for further gains.
Note that, it is not just the Bear Flag pattern that is in play
but also the Kumo Cloud Break Out signal that appeared in
mid October, were trend followers could add to short positions with a stop
above the 1,1712 high.
