As anticipated earlier today, Failure to sustain above 1.1196 - 38.2% of 1.0517-1.1616 did result in a re-test 1.1150. The spot trades around 1.1150 levels.
Take note of the following trend line levels –
Outlook -
Traders need to watch out for a possible rebound from the trend line levels next week, in which case a re-test of 1.1236 appears likely.
Only a day end closing below 1.1130 would shift risk in favor of a further drop towards 1.10 levels, although oversold nature on intraday timeframes could trigger sideways consolidation.
Take note of the following trend line levels –
- Red falling trend line support comes around 1.1138
- Blue rising trend line drawn from Dec 2015 low to March 2 low and extended comes around 1.1130
- Also note, the monthly 5-MA support comes around 1.1135
- Hence there is a confluence of trend lines and MA in the range of 1.1130-1.1140
Outlook -
Traders need to watch out for a possible rebound from the trend line levels next week, in which case a re-test of 1.1236 appears likely.
Only a day end closing below 1.1130 would shift risk in favor of a further drop towards 1.10 levels, although oversold nature on intraday timeframes could trigger sideways consolidation.
