The pair has been consolidating in a descending channel pattern. We see that the price has been making lower highs and we see a weakness in buyers. We see an aggressive move to the downside and the price is on the floor of the descending channel.
Will the sellers be strong enough to push the prices further down and or will this floor prevent further downside? I hope you note the candlestick formations highlighted in the green boxes. The price is talking but are you listening?
Our bias on this pair is neutral. We will wait to see how the price will react at this zone of support. Will the buyers ease the sellers’ pressure? As you know how we do it on FourthStreet Consultants we always let the price guide us on where the market is headed.