Medium term trend: Down
Significant Levels: 1.5920 (Horizontal Resistance), 1.5590 (Horizontal Support), Downtrend Line
We can see in the chart that the was respected by the market and currently, the market is going down. Bears are still in control on this pair therefore, placing short trades is our only option here.
Yesterday's is not a convincing bar. Though it rejected the , it does not show a strong sign. This means that we could see a retesting of the again.
As the price goes down towards the support, we could witness a strong move down again near the . That is if the price breaks the support line. But again, we are not trading the breakouts, we are only going to trade the retracements after the breakout. Therefore, if the breakout happened below the support line, we will place our trade if the price retraced back to the support-turned-resistance, provided that the price formed a action.