Idea: Ever since pair hit a key 161.8% fib extension back in Jan 2015 it has been in a long consolidation pattern (Mar 2015 - Feb 2020) and has never really rebounded from that level.
A key low price to note is 0.68. Other than the Covid reaction in Feb 2020 - Mar 2020, price has never gone below this level. Now that we're in the recovery/retracement stage of the Covid reaction, price should not go below the Covid-low either. But still watch out for further downward adjustment of post-Covid economic health on the medium term, we may not have fully priced the negative effects yet and may start to see that within the next few weeks if businesses suffer further and officially file for closure which will be reflected in domestic economic data.
Note also the level around 0.723 which acted as support pre-covid and is now resistance post-covid. Will continue to monitor price action around this level, and if required, subsequently around the upward trendline also (Consolidation channel lower trendline).
*This analysis is a personal opinion and subject to change at any time without notice. Always make your own independent investment decisions and manage risk appropriately.
A key low price to note is 0.68. Other than the Covid reaction in Feb 2020 - Mar 2020, price has never gone below this level. Now that we're in the recovery/retracement stage of the Covid reaction, price should not go below the Covid-low either. But still watch out for further downward adjustment of post-Covid economic health on the medium term, we may not have fully priced the negative effects yet and may start to see that within the next few weeks if businesses suffer further and officially file for closure which will be reflected in domestic economic data.
Note also the level around 0.723 which acted as support pre-covid and is now resistance post-covid. Will continue to monitor price action around this level, and if required, subsequently around the upward trendline also (Consolidation channel lower trendline).
*This analysis is a personal opinion and subject to change at any time without notice. Always make your own independent investment decisions and manage risk appropriately.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.