Long term trend: Up
Medium term trend: Down
Significant Levels: 0.784 (Horizontal Support), 0.8 (Significant Round Number and Horizontal Resistance), Downtrend Line
The previous analysis was invalidated. The market did not regain its Long term trend. Price continued to decline. As can be seen in the chart, yesterday's bar was a Large Bearish Candle which indicates that the Bears are still in control. This bearish bar formed and broke the Significant Round Number 0.8. This means that the market really wants to go down.
Our opportunity here is for the price to retrace back to the 0.8 level and form a Bearish signal. It is likely that the price will go up today to that level because a strong move cannot be sustained for a long time. We will stick, for now, to this medium term trend and disregard the long term one as we are trading this Daily Chart.
Trade well.
Medium term trend: Down
Significant Levels: 0.784 (Horizontal Support), 0.8 (Significant Round Number and Horizontal Resistance), Downtrend Line
The previous analysis was invalidated. The market did not regain its Long term trend. Price continued to decline. As can be seen in the chart, yesterday's bar was a Large Bearish Candle which indicates that the Bears are still in control. This bearish bar formed and broke the Significant Round Number 0.8. This means that the market really wants to go down.
Our opportunity here is for the price to retrace back to the 0.8 level and form a Bearish signal. It is likely that the price will go up today to that level because a strong move cannot be sustained for a long time. We will stick, for now, to this medium term trend and disregard the long term one as we are trading this Daily Chart.
Trade well.