One tool we will utilize in interpreting market behavior is our Line.
Starting with January 16th highs, connecting to February 2nd lows
You will notice that below the February 2nd low, I have drawn a , which has been tested on two occasions. The first test occurred on February 2nd,and the second on March 11th. Currently this is being tested a third time.
With a 52 week low marking this at 0.72000. The bulls managed to rally up to the 0.76 Fibonacci Line. Not before first testing 0.61 as an initial correction wave which marked our first corrective wave. Shortly after a second corrective wave broke through the 0.61 line. The third wave brings us to the 0.76 line, then dropping in the . Which we start a line, in preparation for another rally out of this .
What we are speculating;
If price action breaks above the , bulls may rally up the reatrcement zones of the downward leg from our third corrective wave. Afterwards, we would look for rejection from a fibinocccie line, then breaking into and below the . This would form a triple dead cat bounce, followed by a downward continuation.
If price action breaks below the and does not rally above, an opportunity to go short will present itself.