The FX Specialist view – After a good recovery last year, which still fell short of the major 2008 peak, the chart turned indecisive. One or two clues are appearing that suggest a period of weakness could now be seen.
- WEEKLY CHART
In the FX Specialist Guide we have been noting the rising support line that was running through the 0.7500 area.
A weak close on the week would see an initial break of this, when downside focus would turn to the 23.6% 0.7248 pullback level for potential support (but also see Daily chart). - DAILY CHART:
Good resistance had previously emerged from around the 0.7835 22-Nov high (near to a 76.4% bounce level, not shown).
The drop back from this has now seen a violation of the 0.7521 21-Jan low which provides a s/term negative sign. The 0.7329 16-Dec low could provide support, but more interesting could be the bear channel base projection just above 0.7200 now. Currently, s/term rallies should prove temporary.
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