This pair has been consolidating inside of a bearish pennant over the last couple of months. I believe that it is getting ready to break through the bottom trendline and head further down. If price bounces off of this key trendline, as it has been, it will complete the formation of a valid head and shoulders pattern, visible on both the H4 and H1 charts. Based on...
Price just broke out of a month-long channel up, and we expect price to move back towards a recent resistance point before heading further down. This would also form a head and shoulder pattern, strengthening the selling signal. If we see price move in this way, I expect price to continue down pretty far to previous levels.
After breaking through a multi-year record high, we are expecting this trend to continue. Therefore we are looking for a buy opportunity. I am expecting price to come back close to the support/resistance area that it had just recently broken through. Because the candle was so strong, I am not confident that price will come all the way down to the area before...
I believe that after breaking through the initial support/resistance area, and continuously testing this area, price will continue downward to a previous support level. This is validated by the double top and break though of the neckline as shown on the chart.
