Today, we want to visit the weekly timeframe instead of the daily timeframe.
For the past few weeks, both the highs and the lows are trading lower and the recent symmetrical triangle has been breached and rendered invalid.
From here, we can clearly see that the current bearish trend that started from 1.2250 is (1)not showing any signs of reversal yet and (2) in the midst of fulfilling the similar volume as the previous bearish wave.
This is the ABC corrective wave of the previous motive waves that started at the beginning of the pandemic, and right now is the last C wave of the ABC corrective wave.
Otherwise, this can also be seen as a AB=CD pullback pattern.
We have seen the dollar strengthened amid rising inflation which caused the market to raise expectation for an earlier tapering from the Fed, and this could persist for a little longer and aids the current bearish wave to complete an ABC corrective pattern.
As such, we will be looking for a couple more selling opportunities towards the demand zone that sits right above the major equilibrium level 1.1580.
For the past few weeks, both the highs and the lows are trading lower and the recent symmetrical triangle has been breached and rendered invalid.
From here, we can clearly see that the current bearish trend that started from 1.2250 is (1)not showing any signs of reversal yet and (2) in the midst of fulfilling the similar volume as the previous bearish wave.
This is the ABC corrective wave of the previous motive waves that started at the beginning of the pandemic, and right now is the last C wave of the ABC corrective wave.
Otherwise, this can also be seen as a AB=CD pullback pattern.
We have seen the dollar strengthened amid rising inflation which caused the market to raise expectation for an earlier tapering from the Fed, and this could persist for a little longer and aids the current bearish wave to complete an ABC corrective pattern.
As such, we will be looking for a couple more selling opportunities towards the demand zone that sits right above the major equilibrium level 1.1580.
