As is shown on the chart, Cable bulls have recently broken a massive resistance zone against Kiwi which had halted them several times before eventual upside breakout. Now that there is a throwback, considering the borders of this zone, I favor a rather short lived correction that will reverse in the current zone. The maximum downside potential for this correction seems to be the 2.0740 level.
As anticipated, the bulls quickly retook the recent swing high. But the point that sends warning signals is that the bulls were not able to hold the conquered territory and retreated. This suggests that bulls need a serious consolidation to prepare for another attack upward.
As anticipated, the bulls quickly retook the recent swing high. But the point that sends warning signals is that the bulls were not able to hold the conquered territory and retreated. This suggests that bulls need a serious consolidation to prepare for another attack upward.