On this chart it can be seen that we have been provided with a lower low breaching the purple 200 MA.

Therefore I prefer to be a bear and wait to analyze the retracement to see if a lower high will be provided.

Areas I watch out for is to see if price respects the red or blue MAs and if price also provides a reversal candlestick pattern at the level of the moving averages.

If price retraces further then hardcore resistance can be found at the 1.61000 to 1.61600 level where price should find difficulties in breaking through.

My target would be the 1.58000.

Best of PIPS

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