Bearish pennant in progress

October 07, 2015 08:53

USD has recovered to some extent after bad NFP result mostly by rising of US yields and general USD sentiment. Technically we can spot a huge bearish pennant on H4 chart with a clear range in between. Adding to that we can see that MACD is going sideways and histograms are very small which indicates that the pair is stuck in a range with no momentum.

POC inside a bearish pennant comes in 120.80-121.00 and if the price stays inside the pennant we might see another rejection towards 119.80 and eventually 118.60. Only H4 close below 118.60 or momentum breakout with stop grabbers will target for a retest of 118.15 and if the price breaks 118.15 it might proceed towards 116.12.

Have in mind that the pair is also bought on DIPS so x cross confluence around 119.00 might attract buyers. If the pair breaks and closes above 121.65 it will negate the pennant.

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