- Stop loss 195.30
- Entry level 193.03
- First Target at 191.17
- Next targets to test at 190.00, 189.46
A deeper decline is expected as long as 195.00 resistances holds firm. At this point, such decline is viewed as a correction. Thus, we’d expect strong resistance around long term at 195.00 to contain downside. Meanwhile above 195.30 will turn bias back to the upside.
In the bigger picture, current development suggests that a medium term downside is already taken place and deeper correction could be seen possibly at 190.00. There is clear indication of trend reversal with two bar rejection which closed below the resistance and the price closed below the break of trend line suggesting a shift in momentum.
Focus will be on the structure on the current fall from current levels. At this point, we’d expect some upward movement. Finding a strong resistance break at 193.03 should confirm a bearish move on the pair. The fall from these levels should test 191.17 and would extend at 190 and later at 189.46 support areas. Meanwhile, above 195.30 should extend the upward bias which shall dampen our short term view. Outlook remains bearish for the weekly bias.
- BRC Retail Sales Monitor
- Claimant Count Rate, ILO Unemployment rate, Average Earnings Index
- RICS Housing Price Balance for the Pound
- Eco Watcher’s survey for the Japan
- Industrial Production followed by Tertiary Industry Index
- Machinery orders with Foreign bond Investment
Area of Interest
- Strong resistance at 195 areas which is flip area for current levels.
- Bearish pattern confirmed with two bar reversal at resistance levels.
- Pair finding resistance on trend line and closed below the decline trend line.
- Key area to target to the downside bias shall be at 190 levels.
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