By analyzing the pair with a Weekly / Monthly chart it's clear that we are in a downtrend. But we are interested in the daily timeframe, so which are the main charateristics that show a probabilly bearish setup?
1) The volume as been decreasing while the price was going up, this means that the price was going up but the buyers are not enough strong and interested to push it up further
2) We had a volume and price spike just before the touch of the Weekly trendline, this is an abnormal situation and it means an exaustion, it's interesting to see how the volume reacts when the price go down (it expands and shrinks when it goes up).
I would say to just wait and see what happens with the current bearish trendline, at the moment the price is in a consilidation phase (rectangle) which can evolve in 2 different situations:
1) a bullish rectangle breakout (WATCH THE VOLUME BECAUSE IF IS LOW THIS MEANS THAT IT'S NOT GONNA BREAK THE TRENDLINE AND COULD BE JUST A RETEST).
2) a bearish rectangle breakout which means that the trend is gonna break the SMA200 and keep falling with some rallies, it's also important to keep follow how the volume is moving along the price.
1) The volume as been decreasing while the price was going up, this means that the price was going up but the buyers are not enough strong and interested to push it up further
2) We had a volume and price spike just before the touch of the Weekly trendline, this is an abnormal situation and it means an exaustion, it's interesting to see how the volume reacts when the price go down (it expands and shrinks when it goes up).
I would say to just wait and see what happens with the current bearish trendline, at the moment the price is in a consilidation phase (rectangle) which can evolve in 2 different situations:
1) a bullish rectangle breakout (WATCH THE VOLUME BECAUSE IF IS LOW THIS MEANS THAT IT'S NOT GONNA BREAK THE TRENDLINE AND COULD BE JUST A RETEST).
2) a bearish rectangle breakout which means that the trend is gonna break the SMA200 and keep falling with some rallies, it's also important to keep follow how the volume is moving along the price.
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From a H4 view is also forming a pennant so let's see how it evolves