Price has repeatedly failed to break out support to trigger our sell entry. What is very interesting to observe is the formation of the RSI. We can see that it is being squeezed by a triangle formation and if it breaks the long term ascending support line, we can expect a similar drop in price. For now, we remain bearish preparing to sell on the break of 1.0859 support (Fibonacci retracement, Elliott wave theory). Upon the break of that level, we will have our stop loss at 1.0913 (Fibonacci retracement) and our profit target at 1.0731 (Fibonacci retracement, price gap, Elliott wave theory).
RSI (34) is seeing long term ascending support holding price up above our key support level. We require a break of this level to correspondingly see a bearish drop on price.
Sell below 1.0859. Stop loss at 1.0913. Take profit at 1.0731.
