A nice close on Friday afternoon of a Bearish Engulfing with not much bull power being shown in the remaining hours of the market, closing at 112.085. On a 1 hour timeframe a head and shoulders has been created with the pair following suit and continuing to fall, adding to the strength of my short sentiment. US news is pretty quite until Tuesday afternoon so could provide some nice opportunities the start of the week before the Fundamental Frenzy kicks in! The RSI is converging with the chart and respecting a nice downtrend also, with the Stoch sitting low but think it will hold.
There are two ways this could go, but the result I believe will be a short. We could see a retrace back up to the 112.600 area before continuing it's fall down to around 111.270, if the monthly support is weak and gets wiped out. If the price shows no stopping past the monthly support level, we could see this pair rally down to the 110.25 region.
Commitment of Traders also showing a positive long hold on the YEN therefore backing up the continuing fall of the Dollar. I have a pretty strong sentiment towards the bearish engulfing holding out and the price pushing more to the downside.
There are two ways this could go, but the result I believe will be a short. We could see a retrace back up to the 112.600 area before continuing it's fall down to around 111.270, if the monthly support is weak and gets wiped out. If the price shows no stopping past the monthly support level, we could see this pair rally down to the 110.25 region.
Commitment of Traders also showing a positive long hold on the YEN therefore backing up the continuing fall of the Dollar. I have a pretty strong sentiment towards the bearish engulfing holding out and the price pushing more to the downside.