As we can see from the price action, the price was rejected at the resistance of 1.35 and retraced back down to 1.3 area. It held this area and did not break down further which to me it suggests that it was a temporary retracement more than bears pushing the price down again.
With this pair, there are 3 options...
Option 1 - Forming a higher low at 1.26 - 1.27 area and bouncing up to 1.35 for a retest and potential break Option 2 - Forming a higher low at bullish trendline of 1.2 and then bouncing straight up to retest 1.4 area Option 3 - A new low or new support is being formed now and the price will skyrocket up to 1.4
On all those options we can clearly see that Bulls have finally taken over after the breakdown of descending wedge. However, as with forex, there is always the potential of trend reverse so I will be paying very close attention to this pair over the next 8 - 12 hours.
I am watching on the daily chart. I like your analysis but I still think it's going to be a SELL from here. Target 11022. The buying today cleared the 11330 but I think it will close underneath that tonight (midnightGMT). The selling has started. Looking forward to it playing out.
TradeXMBL
⋅
@nelsyboy, Thanks for your idea. Have you got an analysis that you have done to share?
nelsyboy
⋅
@Matl101, I did post an idea on 10th or 11th June I think. On the daily, the ABC down has stopped at the 38% FIB retrace. I thought it would get down to the 50% FIB at least.