The FX Specialist view – After some of the dust has settled since last week’s sharp, brief sell-off some initial ideas have formulated. These might begin to excite the bulls, but it is too early to draw conclusions yet.
- WEEKLY CHART
The recent sharp sell-off saw a test of the projected bear channel base before recovery was seen.
First main resistance here comes from the late 2009 84.81 low, and a push through this would be a bull sign. - DAILY CHART:
In the FX Specialist Guide we have wondered whether or not the sell-off amounted to a blow-off move, paving the way for a better recovery on this chart.
In these situations such sell-offs seem to begin near the future 38.2% retracement level…
S/term note initial resistance emerging from the area of the old rising support/return line and 23.6% level – the first positive sign would be a clear close through this, followed by further recovery through that 38.2% level.
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