THE BIG PICTURE: A look at the weekly chart shows a recent high established just beyond the 50% fib level. Notice reversal bar right at the fib level which shows how strong the sellers were are that point. The latest bars are just a continuation of that flush of selling which transpired at the recent swing high. This opens the door for a move down not only to the fib extension levels, but also the weekly 200 sma.
THE TECHNICAL STANDPOINT: Provided the this pair stays below the major high around 0.92 then it sets the stage for a move down to 0.7950 which will then raise the question as to whether or not the buyers will step in. Any move back to the 0.88 zone should provide an opportunity to enter a short position with a stop above the high at 0.93 and a target of 0.80. This provides for a 2 to 1 reward to risk ratio.
THE TECHNICAL STANDPOINT: Provided the this pair stays below the major high around 0.92 then it sets the stage for a move down to 0.7950 which will then raise the question as to whether or not the buyers will step in. Any move back to the 0.88 zone should provide an opportunity to enter a short position with a stop above the high at 0.93 and a target of 0.80. This provides for a 2 to 1 reward to risk ratio.
