I try to find 3-4 common lines before I make a support or resistance line. 1.35463 CLEARLY has FOUR lines of RESISTANCE.
-What happened with the on #2?
The pair decided to go up, which was most likely the result of a news correction. After the pair came back down, it FAILED to exceed 1.35643. The pair continued into a DOWNTREND.
-What happened at our next line 1.35402? (LOOK LEFT FOR CLUES!)
Each line tested and that became a RESISTANCE line.
-What is happening at 1.34825?
We have 3 lines that failed to reach the line on the last upward move. HOWEVER, if you look at the last 48 hours and currently, UC is testing this as SUPPORT. I expect the pair to pass this line and continue down.
-MAJOR RESISTANCE UPWARD!
Take a look at 1.34493. UC had no problem soaring past this line downward. I expect this to be a nice sell if the pair breaks 1.34825. This will be a MAJOR RESISTANCE LINE when UC does indeed come back up! PAY ATTENTION!
-Last line at 1.3402.
We have a HUGE SUPPORT LINE at 1.3402! Each time UC hit that line, it went back up with the exception of news and stop hunting.
So what does this mean? I see UC going down if it breaks 1.34825. We can count 1.34493 as an easy line to get through in the downward trend. The pair will MOST LIKELY be bouncing up once it hits 1.34042. This would make a good BUY entry if UC does NOT fall past the long wicks in the previous trend changes. Just some food for thought!