The main support and resistance on this chart seems to be forming some sort of wedge over the last 30 years or so. The internal support for that trading zone was broken back in august 2010, the darker green line. Since February of 2012 it has been following a new support line within the main support and resistance. Price action has come back up and confirmed the old internal support line as resistance. The light red line (pink whatever). we are in a zone it has been using as resistance just under the pink line. If we fall back out of this zone again it appears a short could take us all the way back down to 1.0461. the lower blue line, where it should also encounter its darker green line again to keep working on the overall wedge pattern. It will be interesting to see how it plays out.
Comment:
It found its resistance. The pair is at the first chop zone now. Time to sweat hoping for the continuation.