The pair has not been able to hold long below the support level 1.1290 because of the saturation of selling indicated by the indicators Stochastic and RSI on each of the four-hour time frames and day, to rise during the day yesterday, ending trading above the level mentioned … On the daily time frame note that the model composed off purchase supported Stochastic’s positive cross as shown on the chart …
A daily closing above 1.1350 might be sufficient to activate the mentioned pattern and to end the downside scenario which achieved its second target at 1.1290 and could then continue to test 1.1405 as the first target and then 1.1460 as the second target at least.
A return to trade below 1.1290 consolidates the possible bearish scenario and the price could then head to its third target at the bottom of November 2018 around 1.1220.
