THE PRICE ACTION WAS MODIFIED TO REFLECT A DIFFERENT PRICE PATH.
Our current outlook suggests a modest bearish trend towards 1.0460, followed by a potential correction back to 1.1130.
Furthermore, we anticipate price conditions to fluctuate broadly between points R and S, representing the upper and lower limits of the megaphone pattern, respectively. This pattern signifies escalating volatility and enlarging price fluctuations as the trend lines diverge.
It is noteworthy that the pair is currently testing its 200-day simple moving average, potentially serving as a significant support level.
The price movement appears to be engaged in wave c, hinting at the possibility of evolving into a complex, overlapping structure. For this to be realised, the price action needs to conclusively breach its 200-day moving average at 1.0839.
A further threshold of 1.0770 remains critical for the price forecast.
Target and Re-assessment Levels:
Important Levels: 1.0988 and 1.0685
Primary Trend and Target Levels: Gains to 1.1300, then down to 1.0245
Monthly Range: 1.0685 to 1.0988
Prevailing Trend and Target Levels: Downside towards 1.0685
Technical Rating: Medium