- The market has been trading above a bullish trendline since October 2023 ; The long-term trend was therefor bullish.
- At the end of March 2024, the market registered a bearish break-out of its long-term trendline, invalidating the bullish trend. This situation took place as prices failed to register a new market high above 1.7342, before registering a new market low below 1.7026.
The RSI confirms the fact that sellers are in control as the indicator now evolves at the doors of the oversold zone. The DMI indicators also demonstrates a surge in bearish pressure.
- The market is clearly in a corrective phase. With that being said, it is hard to assess the magnitude of that correction. The 1.6850 level (50% Fibonacci) should be seen as a major support area, but the scenario of an extended correction towards 1.6740 and 1.6575 should not be totally excluded.
Pierre Veyret, Technical Analyst at ActivTrades
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