Following up on this week’s analysis looking at the Euro Kiwi, which we looked up a fortnight ago. At the time, price was trading within the ascending channel. Our bias was bullish. But then the ensuing week, price broke out of the channel and was confirmed. Immediately our bias shifts to bearish. A double top was later formed, broke out and came for a retest of the neckline.
Succeeding the retest of the double top. We find reasons to believe that the bears may continue to bid for lower prices. Let the market be and further price action to guide us whether the sellers will sustain a price landslide.
Looking at the follow up of the dollar swissy. We had seen a breakout of the rising wedge. After a very dominant bearish candle, there was a formation of a morning star.
As known widely, a morning star is indicative of a reversal. In this case happening after a breakout. It could be a retracement of price, before it further resumes the downtrend. However, the current candlestick is an inside bar which signifies continuation. Patience is key, as price should guide us on what to do next.