The Risig Wedge price parent that might have been in development between the levels of 1.3171 – 1.1400 has been invalidated. The reason was a very shallow rally towards the nearest technical resistance at the level of 1.1414 that was terminated by the Shooting Star candlestick pattern with a top at the level of 1.1400. Since then the market started to reverse and the next candle has broken below the technical support zone of 1.1371 – 1.1380 with ease and made a new local low at the level of 1.1352. The price has been trying to bounce, but it is still trading below the orange trend line, right at the technical resistance at the level of 1.1380.
Despite the oversold market conditions the bears still have the chance to push the price lower towards the level of 1.1342 – 1.1324 support. As long as the price is trading below the orange trend line, this scenario remains in play.
Sell order should be in play as long as the orange trend line is not violated. The targets for shorts are seen at the levels of 1.1342, 1.1336, 1.1330 and 1.1324 (big technical support zone marked in green).
The material has been provided by InstaForex Company – www.instaforex.com