Here is my picture of what is happening here on this pair. We can see a massive drop in a bullish
market from 1.36550 down to 1.32000, following that market has formed bearish flag
pattern and broke it to the downside yielding nice profits and forming an ABCD pattern
that actually yielded some nice profits as well. Now the next thing happening is market is forming a nice bullish head and shoulders
pattern (dark red lines on the chart below),right above the trend line
that has shown a hold in the past ,but not yet confirmed to be valid as only tested twice. All runs very nice and smooth until eventually H&S
pattern has failed to reach the neckline and market rolled over immediately after that and now is potentially forming bullish bat
pattern completing right at the trendline , which also happens to be a major structure level and even handle number. I wont even mention an ABCD pattern
completing at the same level (not shown on the charts otherwise it would make everything too messy and I don't really like that :))
Now there is lots and lots of confluences around 1.31000 level, in my opinion this is a very very nice level to keep an eye for as market is approaching it and hopefully generate some buy signal for us so we can make some profits here as well.
I remind you that it's just my vision about possible market movements. If you have your own, please share in comments. I will be glad to discuss with you. I will be very grateful for supporting my post by your LIKEs, if it's not so hard for you. :)
Trade your plan and good luck in the markets.