The other day we had mentioned that there was a bearish flag forming at the 0.93 area in this pair. It appears that we have broken the bottom of that flag, however it should be noted the flag is a bit on the sloppy side. Truthfully, the important level now is 0.92, as it is the absolute bottom in this pair as an all-time low.
As the last few weeks have gone by, it appears that this pair is weak, but not ready to snap yet. Luckily this pair has a very obvious pair of levels to watch – the 0.92 and 0.9360. These two levels will determine the direction of the pair for a while. Because of the 0.9360 being inside the previous consolidation area, a move above that level could have us going all the way back to the previous highs in that zone. (0.98)
A break below 0.92 will be massive, and should show us 0.90, and 0.88 in quick order.
More March 15, 2011 Analysis:
