On March 24, by breaking down 1.5175, the Double Top pattern could not only achieve its projection target at 1.4820-1.4800, but it also confirmed a bigger Head and Shoulders pattern.
The bears managed to break down 1.4950 corresponding to 50% Fibonacci level last week (the nearest support level). This exposed the price level of 1.4750 (61.8% Fibonacci).
As expected, the bears failed to fixate below 1.4750 on a daily basis. This hindered further bearish progression giving some time for a sideway consolidation for retesting of 1.4945 (50% Fibonacci).
After a few days of indecision around 1.4750, the bulls initiated a bullish spike off 1.4725, and finally they were able to push above the upper limit of the 4H congestion zone.
Two bullish spikes above 1.4950 (50% Fibonacci level on the daily chart) were executed. However, the bulls fail to pursue the bullish breakout leading to its failure.
On the other hand, the lower limit of the depicted triangle located around 1.4850 failed to provide enough support for the pair. Instead, bearish breakdown took place pushing again towards 1.4725 where 61.8% Fibonacci level is located.
The expanding triangle pattern succeeded to push lower after the lower limit of it was broken down and retested successfully.
Overall, the daily chart suggests bearish tendency especially if the daily candlesticks maintain closures below 1.4730.
On the other hand, price zone above 1.4700-1.4730 should be watched for price action. Bullish reaction may be expressed to offer a valid BUY entry with SL as daily closure below 1.4700.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via EUR/AUD intraday technical levels and trading recommendations for May 9, 2014 . Thanks for your support on EUR/AUD intraday technical levels and trading recommendations for May 9, 2014
No comments:
Post a Comment