For my friends here, the Cable dropped to 1.5316 which is not an accurate stop at any (key) retracement level, but is 8 pips above my 57.1% prediction retracement. However, after this healthy correction, if the Cable holds ground above the important support levels, it will be expected to start moving significantly higher, since it did break above the top of daily channel.
Late last week, an important resistance was tested, and we could also that it may have been broken: the top of the falling daily channel which can be drawn from July’s 6-year high. If we use the bottoms first to draw this channel (as is done on attached chart #1), the top of this channel would have been already broken. Now after this healthy correction, it may be the time to use this break in order to achieve significant gains!
Resistance can be found at the micro term retracements at 1.5363, 1.5378, 1.5393 & 1.5405 (already above this level). Although these levels are very close to each other they are capable of giving us clues about the strength of the Cable. As we break above each of them, the confidence rises, while a top very close to any of them would be a reason to worry for the bulls. Breaking above 1.5405 in specific is the one thing needed in order to open the way higher towards levels above Monday’s high. A more important resistance is 1.5475. Breaking above this level would confirm breaking above the daily channel’s top. The implications of this break are gigantic for the medium term bulls. First target for breaking the 1.5460/75 area is 1.5504, followed by a more important levels at 1.5552, 1.5625 & 1.5738!
However, we still do not have evidence that the correction is over, it could still target the rest of the micro term retracements at 1.5297 & 1.5275. A bottom very close to either of them would be a sign that the minor healthy correction is over, and that it is time to go up again, which goes along very well with breaking above the top of the daily channel. A break below all of these micro term retracements is highly improbable at the moment, but testing at least one of them can never be ruled out. However, if the price surprises us with a break below 1.5275, that would target important short term retracements at 1.5215, 1.5161 & 1.5118. Good luck!
Late last week, an important resistance was tested, and we could also that it may have been broken: the top of the falling daily channel which can be drawn from July’s 6-year high. If we use the bottoms first to draw this channel (as is done on attached chart #1), the top of this channel would have been already broken. Now after this healthy correction, it may be the time to use this break in order to achieve significant gains!
Resistance can be found at the micro term retracements at 1.5363, 1.5378, 1.5393 & 1.5405 (already above this level). Although these levels are very close to each other they are capable of giving us clues about the strength of the Cable. As we break above each of them, the confidence rises, while a top very close to any of them would be a reason to worry for the bulls. Breaking above 1.5405 in specific is the one thing needed in order to open the way higher towards levels above Monday’s high. A more important resistance is 1.5475. Breaking above this level would confirm breaking above the daily channel’s top. The implications of this break are gigantic for the medium term bulls. First target for breaking the 1.5460/75 area is 1.5504, followed by a more important levels at 1.5552, 1.5625 & 1.5738!
However, we still do not have evidence that the correction is over, it could still target the rest of the micro term retracements at 1.5297 & 1.5275. A bottom very close to either of them would be a sign that the minor healthy correction is over, and that it is time to go up again, which goes along very well with breaking above the top of the daily channel. A break below all of these micro term retracements is highly improbable at the moment, but testing at least one of them can never be ruled out. However, if the price surprises us with a break below 1.5275, that would target important short term retracements at 1.5215, 1.5161 & 1.5118. Good luck!
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