The pair continues to show a strong long term favour to the downside. Lower Highs, Strong supply. The market has struggled around the 1.25** level. Currently trading near the upper of the upper of the short term resistance and 38.2% fib, failure here would induce a sell signal and expectation for the market to push on towards the first target 23.6% fib (1.2291), second target 1.2160, third target, October market lows.
A Candle close above 1.2600 would encourage price action and demand to drive market to 50% fib. Beyond this consideration should be given to the critical zone and tightly compounded area of July lows and 61.8% fib.
Around this area expect a strong fight between supply and demand. Any break to the upside could be considered a change in long term direction.
Hi Sezer,
Could be but I see a long/short in play mainly in the 1.2675 - 1.2800 band. I will also retain from Ichimiko chart that Chikou Span has crossed above historic closes which is a bullish signal.
Filipo1
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Sorry wrong chart, here is the correct one
Filipo1
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Ichimiko is a new version of Ichimoku... really sorry, fat fingers and sleepy mind :)
Sezer
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@Filipo1, Hi Filipo.. I don't disagree with your view, i just think for that range to become active we need to see the weekly candle close above 1.2600. This then takes it into my .50fib - .618fib along with july lows. This i believe correlates closely with your 1.2675 - 1.2800 band.
Inside that range the battle will be fierce, lots of hurdles and resistance for buyers to get passed. Will be a blood bath. I prefer the short now, following market direction and range, if fails, wait to see if market breaks 1.2678 to the upside.
Could be but I see a long/short in play mainly in the 1.2675 - 1.2800 band. I will also retain from Ichimiko chart that Chikou Span has crossed above historic closes which is a bullish signal.