Good morning to all and happy week ahead. I expect Dollar to be weak this week specially if we see the dollar index break below 98.50.
Remains inside a downward sloping channel. Above 1.0950 we should expect a rally to 1.12-1.13. Support at 1.08 is respected despite all the news that could have pushed it lower.
Price is approaching important cloud resistance in the 4 hour chart. Resistance area is found between 1.4340-1.4450.
Bulls should be very cautious as we could see a rejection at current levels and a push to new lows.
As I had mentioned in my previous posts, this pair has signaled a bigger bearish reversal is at hand and rallies should be sold. The first leg down is most probably over and we should expect a bounce towards the short-term ichimoku cloud resistance for a back test.
I expect a bounce towards at least 1.4330.
It looks like we can see a short-term bearish signal soon as price is testing the short-term upward sloping channel and as we have already reached the 38% Fibonacci retracement of the decline from 123.60.
Price remains above the Ichimoku cloud in the 1 hour chart but breaking below 118 will be a bearish signal that implies a move lower towards 117.70 is very possible.
In the 4 hour chart we have 117.70 as important support. Breaking below it will open the way for new lows towards 116.
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