Weekly: After bouncing off major support at 1.2675 region, the pair has retrace and retested the upside at 1.33 level where it found strong resistance and formed a strong Shooting Star Formation. In addition, the rejection also coincide at the Dynamic Resistance of EMA 21 & 50. Following the formation, the pair has tried to reclaim the upside only for it to be rejected once again by the EMA 21 as it formed another Shooting Star formation. Thus, I would consider the pair to be extremely bearish and it would likely go another leg lower to formed a new lower low. In addition, we can also clearly see that the pair has shown rejection at 50-60% fib level, which give more confluence to our bearish setup.
Daily: After facing strong selling pressure at resistance 1.33. The pair has continue to break the uptrend with a Bearish Marubozu candlestick. Currently, the pair has found some level of support at 1.3 which is the psychological support. From the daily view, the movement of the PA is not well defined enough, thus a more detailed view is needed for more confirmation. Although on the weekly the pair seems to be extremely bearish and would likely to pop downwards towards 1.2675. However, the pair is likely to retrace as the market consolidates for the next move.
Using Fibonacci Retracement, the pair could potentially continue the dip towards 1.299 & 1.29 before it rebound further.
Things to look out for: Its important to look at how the pair react to the psychological level 1.30. If the pair dip further down, the downside target would be 1.29. Alternatively, if it found support at 1.30 the pair would likely re-bounce towards 1.31 region to retest the resistance to act as confirmation of the broken uptrend.
