The currency cross is clearly bearish. In this way, let's look at the parallel channel and at its trendlines.
The support line is at about 1.09 (0% FIBO level). The FIBO retracements start with the 100% level at the previous top (1.155). We can notice that 50% (a key level) is marked by a previous bottom (it is placed at the lows of two long candles).
Lately, we can notice a bounce. However, it could represent just a volatility exhaust from oversold (see the BBs). In the medium term, the trend is still bearish. In the short term, as I said previously, there is a bounce with the test of 23.60% FIBO level (1.104).
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| Chart from Markets.com |
With a weekly timeframe, the bearish trend is moreover confirmed: see the slope of the EMA bundle, the parallel channel (the second one). On the other hand, the bearish trend is not as emphasized as the previous bullish trend of the year 2017.
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| Chart from Markets.com |
To conclude, let's take a look at the last trend (it is more interesting, due to the rebound in progress, as explained above). The rebound started from the minimum at about 1.09. With the last trading sessions, he had a setback: there is a potential overbought (see the RSI indicator); then, the candles left the upper band of the BBs. For this reason, at the moment, there is a clear test of the previous maximum at about 1.104-1.105. The next trading sessions will be very important to understand the market direction (just a pullback or the beginning of a bearish trend also in the short term). Indeed, it is too early to speak about a bearish trend in the short term: the candles are quite far from the midline of the pitchfork; then, there is not the break of the 23.60% FIBO level (1.09-1.104).
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| Chart from Markets.com |
