:: Weekly ::
The currency pair was trending up in long term bullish channel
The currency pair formed bearish engulfing candlestick formation (shaded in green) near the upper limit of this channel indicating downside movement to follow .
Fast decline to 1.3969 occured next and still there's potential downside movement till the lower limit of the bullish channel
The previous week candlestick closed as inverted hummer ( shaded in yellow ) indicating continuation of the selling pressure
We want the current candlestick to close below 1.4050-1.4000 in order to maintain the bearish view on the long term otherwise there may be retracement before it resumes downside movement .
:: Daily ::
Break of the uptrend on May 6 this month enhanced the bearish view affected by the engulfing weekly candlestick
but the downside movement was contained at the level 1.3969 which is at the same level with 61.8% fibonatcci .
Yesterday's candlestick closed as a hummer at this level indicating solidification of the level at this time meaning that retracement to 1.4200 (at least) can occur before resuming the downside movement
This probability of retracement is cancelled if we see quick break below 1.4050
:: 4 Hours ::
The pair is still respecting the bearish channel which contained the downside movement from 1.4940
The pair is moving towards the upper limit of this channel and 50% fibonatcci level at 1.4150 - 1.4200 which will be good selling area
Suggested Trades :
Based on previous analysis we have the opportunity to go short at levels 1.4150 - 1.4200 with targets to 1.3750 as 1st target with further target at 1.3500
SL should be above 1.4350
