After the sell off experienced yesterday, we still have a weak price and the high volatility continues.
The weekly chart shows a previous over extended trend and a bullish flag formation.
8 out 10 times over extended trends (up/down) tend to fail when it try to build new patterns and in this case the bullish flag was denial the by the sell of that we all experienced yesterday.
The high volatility will continue for some time and counter trends will be the common thing during the next few sessions.
I believe the weekly chart is creating the right conditions for a potential Higher Low and if that happened there is a possibility that the currency will gain what it was lost in previous sessions and eventually will visit the major resistance once again.
The weekly chart shows a previous over extended trend and a bullish flag formation.
8 out 10 times over extended trends (up/down) tend to fail when it try to build new patterns and in this case the bullish flag was denial the by the sell of that we all experienced yesterday.
The high volatility will continue for some time and counter trends will be the common thing during the next few sessions.
I believe the weekly chart is creating the right conditions for a potential Higher Low and if that happened there is a possibility that the currency will gain what it was lost in previous sessions and eventually will visit the major resistance once again.