The pair made a great breakthrough with an explosive and impulsive movement. The price reached the strongest resist area, created over 2 months ago. This area is very respected and the price is trying to keep that.
The price over the upwards movement created a parallel channel and while touching the area of resist, the price started to lose momentum and broke the upwards channel.
On the broken part, we can see the candlesticks formations and recognize small low area price movement, which is strong indicator for an impulsive movement downwards to the next support area (becomes resist).
The price is moving downwards to the main support level.
Further and detailed explanation about the price movement
The next move is expected to be a retracement but it depends on the price formation before. The retracement would be probably 0.618 Fib.
After that the price would probably go down with a small candlesticks price formation, because the price would be very tired but with a very strong downwards movement probably expected to be in a small range of parallel channel.
After all the price would eventually reach the bottom of the support areas and rest there for a while.
Good luck traders, hope you have a great trading week.
Please leave a comment below
The price over the upwards movement created a parallel channel and while touching the area of resist, the price started to lose momentum and broke the upwards channel.
On the broken part, we can see the candlesticks formations and recognize small low area price movement, which is strong indicator for an impulsive movement downwards to the next support area (becomes resist).
The price is moving downwards to the main support level.
Further and detailed explanation about the price movement
The next move is expected to be a retracement but it depends on the price formation before. The retracement would be probably 0.618 Fib.
After that the price would probably go down with a small candlesticks price formation, because the price would be very tired but with a very strong downwards movement probably expected to be in a small range of parallel channel.
After all the price would eventually reach the bottom of the support areas and rest there for a while.
Good luck traders, hope you have a great trading week.
Please leave a comment below