This is the monthly non-perfect channel chart of EURUSD as far as the data is concerned. A simple math shows that the mean area is around 1.20 - 1.22 which has been tested as S/R zone or broken a handful of times. Since the climax of 1.60 which serve as a turning point at the resistance of the upper uptrend channel and the onset of downtrend channel, EURUSD has engaged itself in a long term downtrend channel or so. However, the the last drop was supported by 1.20 - 1.22 zone and it bounce back without reaching the bottom of the downtrend channel line shown. Still after a slight false breakout of the upper downtrend line, it was rejected and began to plunge for 4.5 months. Something fishy emerged at the moment. I observed a not-so-steep uptrend channel (light blue) protruding out.
2 possibilities could happen:
1. Either the price will bounce off from this light blue channel bottom and get rejected by the resistance of downtrend channel line and continue to drop to 1.20 - 1.22 zone (black dotted cursor)
2. Or based on the current bearish momentum, it will continue plunging to test 1.20 - 1.22 first before reversal (shown in red dotted line)
i do not rule out other possibilities though
Comments
jangseohee
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it finally touch the channel bottom man
what a patient, what a profit
WHAT a CHANNEL!!!
BoonOng
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Very powerful channel indeed.
Could it be the start of recovery?
jangseohee
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really hard to say, we got to take it one at a time
what a patient, what a profit
WHAT a CHANNEL!!!