Weekly: Prior to the breakout, the pair has formed a Morning Star formation as it found support on 140.25 region. This indicates that the pair is potentially undergoing a trend reversal. This is then followed by a breakout of the downtrend. However the break is unconfirmed as the weekly candlestick formed a Shooting Star formation and with the next weeks trading between the range of the Shooting Star, which is above the Downtrend. A downside retest of the support below is needed to confirm the break of the Downtrend and the trend reversal.
Daily: After briefly touching the resistance at 149.7, the pair faced strong selling pressure and formed a strong Bearish Engulfing candlestick on 21/9, Friday, the last trading day of the week. This indicates that the resistance at 149.7 is significant and the pair would likely face a certain amount of resistance at this range. Following that, the pair has continue to trade within the range of the Bearish Engulfing candlestick with the price movement relatively contained, consolidating as it wait for more impetus. The pair has also subsequently found support at 147.6 level as it bounce between levels.
Things to look out for: A downside break of the range would expose the pair to downside target at 145.5. Alternatively an upside break of 149 would expose the pair to upside target at 149.7 & 151.7.
