The daily time frame we are currently trading in a bullish channel after retesting the support level from the neck and shoulders pattern that was broken a couple weeks ago.
The 1-hour time frame shows price trading in a bullish channel however there was a break of the trendline on this time frame and there is divergence showing on the MACD. Possible bearish move to the 0.67800 level before we continue higher.
On the daily timeframe price is currently trading on trendline support level and while it has consolidated it has formed a bearish wedge pattern. While the market is consolidating one needs to wait for a break of the wedge to either enter long ( buy ) or short ( Sell ). If prices breaks to the downside out short target would be 13.55 and if we break to the upside then one could potentially look to create news highs given the market structure at the moment.
Price has broken out of the bullish channel it has been trading in since Oct 18 and has consolidated between the 1.33 and 1.31 levels. Last week there was a break of the 4HR trendline and currently has flag forming which could signal a push higher to the 1.34 level if it breaks resistance.
The alternative scenario is that it breaks to the downside and continues its bearish momentum
2 weeks ago we had the flash crash however the pair still closed the week above the weekly support zone creating a classic pin bar. Since then price hasn’t moved much and is consolidating below the daily resistance zone. A break of the daily resistance level will see the pair push higher to the weekly resistance zone 83.91 before continuing its bearish momentum.
The alternative scenario is that it breaks support and with a valid retest of the support becoming resistance will lower to the 76.34 level.
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