EUR/CHF could turn to the downside
Price decreased in the yesterday’s session and invalidated the breakout above a dynamic resistance, maintains a bullish perspective, but we may have a minor retreat in the upcoming days. I’ve said in the previous reports that we may have another leg lower on the short term as the pair touched a strong resistance area.
However, the retreat could be only temporary because could come down to test and retest some support levels in the upcoming period. Continues to stay much above the 1.1000 psychological level signalling that the bulls area still in the game, a correction is somehow natural after the impressive rally. Could jump much higher anytime, so is not recommended to go short on this pair at this moment.
We had several false breakouts above the upper median line (UML) of the major ascending pitchfork and above the median line (ml) of the minor ascending pitchfork, signalling an overbough. The failure to climb above these levels could bring a minor correction on the Daily chart, the rejection could send the rate towards the warning line (WL1) and towards the lower median line (lml) of the minor ascending pitchfork, where he could find support again.
Could be attracted by the confluence area formed at the intersection between the lower median line (lml) with the warning line (descending dotted line). We may have another bullish momentum from there.
The upside movement will resume only if will jump and close above the 1.1072 previous high, otherwise could decrease even towards the median line (ML) of the major ascending pitchfork. Has opened with a minor gap down today, signalling that the bears are getting stronger on the short term.
AUD/USD is the upside movement completed?
The AUD/USD rallied aggressively in the yesterday’s trading session and jumped much above 0.7900 psychological level, but found strong resistance at the 0.7942 level. Maintains a bullish perspective, despite a minor retreat. Actually a decrease will be natural after the impressive rally.
The greenback was demolished by the USDX’s impressive drop, the index plunged much below the 95.00 psychological level and reached the 94.49 level. USDX touched also a strong dynamic support, but is premature to say that will be strong enough to stop the bearish momentum.
Price found resistance right below the first warning line (wl1) of the minor ascending pitchfork and now could decrease towards the upper median line (uml). Has touched the May 2015 highs today, could climb much higher as long as is trading above the lower median line (LML) of the major ascending pitchfork.
EUR/GBP false breakdown?
Looks like that we had a false breakdown below the median line (ML) of the major ascending pitchfork and below the 100% Fibonacci level. Has come back above the second warning line (wl2) of the descending pitchfork, we’ll have a great buying opportunity if will stay above this broken obstacle and if will come to retest the ML.
