This bearish channel has been the central theme of the entire year.
The market Stopped for the holidays and right after New Years day, we saw the break out that lead to this downtrend.
Every big move this year up or down has been stonewalled by the upper and lower limits of the channel.
The median has also acted as a key support and resistance level, which you can see is happening now.
This past week, bearish momentum has been turned on its head as it looks like bears are gaining the momentum in the market.
On the lower time frames a bullish breakout pattern could be brewing up a nice sharp upswing in price, back to the top of the channel.
Should this happen, you would have to put your money on a reversal back through the median to the bottom of the channel.
The last place that price stopped was around 1.01725, so I'm expecting price to meet with the top of the channel in that price range.
I'm looking long, for now, but I'm prepared to change my bias withing a week or so.
The market Stopped for the holidays and right after New Years day, we saw the break out that lead to this downtrend.
Every big move this year up or down has been stonewalled by the upper and lower limits of the channel.
The median has also acted as a key support and resistance level, which you can see is happening now.
This past week, bearish momentum has been turned on its head as it looks like bears are gaining the momentum in the market.
On the lower time frames a bullish breakout pattern could be brewing up a nice sharp upswing in price, back to the top of the channel.
Should this happen, you would have to put your money on a reversal back through the median to the bottom of the channel.
The last place that price stopped was around 1.01725, so I'm expecting price to meet with the top of the channel in that price range.
I'm looking long, for now, but I'm prepared to change my bias withing a week or so.
