Support 1.5500/1.5490 breakout was an early signal to a downward movement and suggested strengthening of the “bearish” potential, as well as high-possibility for a downtrend scenario.
The price fall below 1.5470 confirmed the “bearish” power, and the trading is currently carried on at 1.5390 with the “bears” trying to break it and continue their trend. Indicators turned downwards, which gives grounds to expect the “bearish” attempts to be successful. Nevertheless, only the breakout of level 1.5380, which is a previous local minimum and a strong support, will give sound grounds to anticipate target level 1.5340/30 testing. Key resistance 1.5550 breakout and the following upward movement will suggest a reversal to the “bullish” moods. In this case levels 1.5790/1.5800 are likely to be tested in the nearest time.
Analysis prepared by:
Arkady Nagiev
Forex4you analyst