The price tested the local minimum 1.1578 (which is also the support now), but failed to break it down, rebounded up and is trading in the local consolidation near this mark at the moment. We should note that the growth of the pair was on small volume
, so we should consider it as a reversal signal. Given the strong fall last Friday we still should give advantage to short positions, but we need to wait for the sure breakdown of the support to be able to enter the market. The move should be sharp and supported by increased volume
. A stop loss must be placed above the breakdown volume
bar. A potential of the deal is more than 120 pips.
The bottom line: short positions after a strong breakdown of the support.