1. After an extended bearish run, the pair has printed a doji. Indicating the bearish momentum might stall as it enter a correction rally.
2. The pair has to retest the upside at 142.5 - 144 to confirm the break and for more downside to materialize. The region is also a potential supply zone where the seller will reenter.
3. A rejection on the supply zone would be taken as signal for a continuation of a downtrend. The downside target would be 139.5. On the flipside, a break above 142.5 would expose the upside at 144. Furthermore, a break above 144 would invalidate the downtrend.
Bias
Long-term: Bearish
Short-term: Bullish
2. The pair has to retest the upside at 142.5 - 144 to confirm the break and for more downside to materialize. The region is also a potential supply zone where the seller will reenter.
3. A rejection on the supply zone would be taken as signal for a continuation of a downtrend. The downside target would be 139.5. On the flipside, a break above 142.5 would expose the upside at 144. Furthermore, a break above 144 would invalidate the downtrend.
Bias
Long-term: Bearish
Short-term: Bullish