Downside confluences:
1. Descending trendline resistance.
2. Major key level 1.2400 resistance.
3. MACD divergence wich means the market is losing momentum.
A strong bearish candle through the ascending trendline would point a reversal.
From another point of view the marke is making HHs and HLs wich means the price could extend above 1.24.
If we fail to close...
If we stay above 1.2400 Monthly resistance, there is potential for a higher high into the 1.2650 region. However if the price closes below 1.24 we can retest the 1.2200 figure.
This last gap that can be seen on the chart was caused by Sunday's French election.If the gap is not filled quickly this week we can seen 1.1 soon , otherwise price can test 1.07 weekly resistance. At a larger scale we can see that pair is moving in an uptrend potential channel.
The 1-month fine triangle pattern is breaken below bottom trendline and also 140 support level .Usualy the move after breaking the pattern is equal in pips with triangle basis (700pip) but I expect at least 300pip move as it could be an ABCD pattern also. I suggest to enter this trade after an flag and/or trendline retest.
