Instead, a was created, followed by a strong move lower. For the first time in a long time, our moving average has been broken. This has all the signs of a reversal in the making.
An aggressive trader might already be tempted to enter here, but I reckon that the pair will make a retracement to the 9.06000 area first as a way for the sellers to catch their breath. If we see strong selling momentum afterwards, I will be looking for a short entry. Of course, price might move lower straight away too.
I've laid out some of the levels (in light blue) where I can see the price hold up a bit or even change direction. However, if the trending markets of the previous months are any indication, we might see a nice move down.
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