1. Since January 2016, the pair has been in a big downtrend, forming consecutive lower high and lower low.
2. The pair has formed a lower low at the Major Support at 1.22-1.24 region. This indicates that the pair would enter a correction rally to the upside.
3. Following the correction rally, it formed a Rising Wedge formation as it challenge the upside at 1.325 - 1.335. This signify that the correction rally is running out of steam as the bullish momentum is fading.
4. Then it was rejected twice on 1.335 region ( also the Fib 0.5) as it printed a Shooting Star + Bearish Engulfing, which signal a potential reversal. The rejection coupled with the Rising Wedge formation indicates that the pair has potentially form a new Lower High and the down trend would resume to form a new Lower Low.
5. The pair would likely challenge the support at 1.31 region for a break below. A clear break & retest would confirm the breakout of the rising wedges and target the downside at 1.24 region (Measured Objective).
On the flipside, if rejected, it would retest the upside at 1.33 for an upside break.
Bias
Long-term: Bearish
Short-term: Bearish
2. The pair has formed a lower low at the Major Support at 1.22-1.24 region. This indicates that the pair would enter a correction rally to the upside.
3. Following the correction rally, it formed a Rising Wedge formation as it challenge the upside at 1.325 - 1.335. This signify that the correction rally is running out of steam as the bullish momentum is fading.
4. Then it was rejected twice on 1.335 region ( also the Fib 0.5) as it printed a Shooting Star + Bearish Engulfing, which signal a potential reversal. The rejection coupled with the Rising Wedge formation indicates that the pair has potentially form a new Lower High and the down trend would resume to form a new Lower Low.
5. The pair would likely challenge the support at 1.31 region for a break below. A clear break & retest would confirm the breakout of the rising wedges and target the downside at 1.24 region (Measured Objective).
On the flipside, if rejected, it would retest the upside at 1.33 for an upside break.
Bias
Long-term: Bearish
Short-term: Bearish