The NZD has been relatively weak and the JPY - almost as strong as the USD. Thus the bull trend line was broken two weeks ago, after a failure to make a new high. Since then it's been following a down fork. At first we saw price dancing above the median line, but most recently there have been more frequent excursions beneath it. So I think it's quite probable that this correction may go down as low as 84, which a level where the 38.2% retracement coincides with the 138.2% alternate price projection of the Apr-May swing down.
And yet it has to taken into account that price is at a strong support level that can stop and reverse the ongoing decline. Should a surprise rally take place, I wouldn't expect it to retrace more than 50% of the entire descent.
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Disclaimer:
There is a very high degree of risk involved in trading forex. I assume no responsibility or liability for any trading or investment results. My posted statements and charts may unintentionally include inaccuracies. All content posted is for educational purposes only and is not a financial advice. The presented set-ups are not solicitations of any order to buy or sell.
And yet it has to taken into account that price is at a strong support level that can stop and reverse the ongoing decline. Should a surprise rally take place, I wouldn't expect it to retrace more than 50% of the entire descent.
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Disclaimer:
There is a very high degree of risk involved in trading forex. I assume no responsibility or liability for any trading or investment results. My posted statements and charts may unintentionally include inaccuracies. All content posted is for educational purposes only and is not a financial advice. The presented set-ups are not solicitations of any order to buy or sell.
