The pair is in a long-term down-trend as a result of the impact of falling commodities and a slow-down in the Chinese economy.
The most recent move, illustrated on the chart below is a bearish 3-wave ‘measured move’ pattern or large zig-zag. The C leg of the move is now between 61.8% and 100.0% of the length of the A wave.
Given the pair is in the zone where the measured move may well end and there is a heightened chance of a bullish recovery. Unfortunately this plays against expectations the dominant trend will extend lower.
Therefore, is too risky to advise a sell at this point even the dominant trend would normally be expected to continue lower.
The pair is in a long-term down-trend as a result of the impact of falling commodities and a slow-down in the Chinese economy.
The most recent move, illustrated on the chart below is a bearish 3-wave ‘measured move’ pattern or large zig-zag. The C leg of the move is now between 61.8% and 100.0% of the length of the A wave.
Given the pair is in the zone where the measured move may well end and there is a heightened chance of a bullish recovery. Unfortunately this plays against expectations the dominant trend will extend lower.
Therefore, is too risky to advise a sell at this point even the dominant trend would normally be expected to continue lower.