On the weekly chart, I am taking into consideration the bearish momentum that started in March 2014 (1.3905), which finally stopped in December 2016 (1.0451). Now we can see how the pair had already made an attempt to reach the 0.618 level, and apparently, we are in the second attempt that so far does not seem to be successful.
However, if we look at the bullish momentum that occurred from December 2016 to January 2018, it gives us a fibonacci ratio in the correction of that movement of 0.786, which is the bearish momentum that occurred from January 2018 to May 2020.
Then we can see, if we are facing the end of the bullish momentum, it would be the same fibonacci ratio of 0.786. This could lead to a movement that is undergoing a contraction.
Finally, if this forecast comes true, our downside target should be the same fibonacci level 0.786 (1.1028), which at this point sounds quite crazy but anything can happen in the market.
Happy trades, I await your comments 😀👍🤝🏼
However, if we look at the bullish momentum that occurred from December 2016 to January 2018, it gives us a fibonacci ratio in the correction of that movement of 0.786, which is the bearish momentum that occurred from January 2018 to May 2020.
Then we can see, if we are facing the end of the bullish momentum, it would be the same fibonacci ratio of 0.786. This could lead to a movement that is undergoing a contraction.
Finally, if this forecast comes true, our downside target should be the same fibonacci level 0.786 (1.1028), which at this point sounds quite crazy but anything can happen in the market.
Happy trades, I await your comments 😀👍🤝🏼
