The pair was falling in line with the very short-term trend. It then found support at the 1.1047 historic support and resistance level and has bounced. It has since found resistance at the 61.8% Fibonacci line of the previous rally and is currently consolidating at that level.
Whilst there is a possibility this correction still has a little higher to go – perhaps to 1.1100 – the short-term trend remains on balance bearish and is expected to extend lower.
For confirmation of more down-side, however, I would ideally want to see a clear break below the 1.1047 level, including a 20-point margin, so below the 1.1027 level. This would probably lead to a continuation lower to 1.0954.
The pair was falling in line with the very short-term trend. It then found support at the 1.1047 historic support and resistance level and has bounced. It has since found resistance at the 61.8% Fibonacci line of the previous rally and is currently consolidating at that level.
Whilst there is a possibility this correction still has a little higher to go – perhaps to 1.1100 – the short-term trend remains on balance bearish and is expected to extend lower.
For confirmation of more down-side, however, I would ideally want to see a clear break below the 1.1047 level, including a 20-point margin, so below the 1.1027 level. This would probably lead to a continuation lower to 1.0954.