Weekly: After rebounding from the August Low at 1.131 region, the pair has traded higher towards 1.18 region where it found significant resistance and faced strong selling pressure, leading it to print a Bearish Engulfing candlestick. This indicates that the pair could potentially go another leg lower if the support at 1.155 is broken.
Daily: On the daily chart, we can clearly see that the pair failed to push above 1.18 and it faced strong selling pressure there. Following the rejection, the pair faced strong selling pressure and breakout of the uptrend with strong bearish candlestick. This indicates that the pair could potentially make a new lower low if the support at 1.155 is broken. In addition, the pair seems to be contained within the range of 1.155 - 1.1725 region.
Things to lookout for: The pair is expected to drop further towards the 1.155 region before any significant signal can be seen. If the pair managed to make a sustained break below 1.155, it will expose the pair to further downside at 1.131. Alternatively, if the pair found support at 1.155 it could retrace higher before it continue another leg lower, or it could retest the resistance at 1.18 region.
