Background: Price found enough demand to halt its current downmove @1.46300 where the current minor rally broke the (red) supplyline indicating that demand outweight supply at this moment , the rally stopped near the current high @1.5552 which can bee seen as current resistance which needs to be overcome in order to speak for returning strenght to the market , if we break the (green) demandline we may head down to at least 1.50280 which is the 50% retracement level of the current rally, any buying occuring at that level can bee seen as a further sign of strenght , however if we fail to hold this level we head back to the support @1.4630 and any rejection at this level can be seen as strenght yet again , however we may form a trading range between res.1.55520 and sup. 1.4630 for the time beeing .
Signs of Strenght:
Downmove came to an halt
Broken Supplyline
Signs of Weakness:
Price failed to take out the actual high
Key Levels above current price: 1.5520 1.5870
Key Levels below current price: 1.5028 1.4630
sidenote: A downmove can only last for so long till their is a change in demand, and the balance of supply and demand changes in the favour of demand , ie. the buyers are at least heads up with the sellers and stop price from going any lower , if price then is in equibilirium ie., going sideways most traders agree on the same price "fair value" value = price over time , this balance(cause) aswell only goes on so long till there is a change in demand and supply and we have an imbalance(effect) and a new trend establishes till we find balance again..