RESUME & VIEW – IN NOVEMBER THE PAIR CONFIRMED THE EXISTENCE OF THE SUPPORT AT 1.5900 FROM WHERE IT STARTED TO RISE AND AT THE END OF NOVEMBER ENTERED THE RESISTANCE AREA OF THE DOWNSLOPE TRENDLINE AS SEEN FROM THE CHART BELOW.

APPEARED A WEAK ATTEMPT OF THE PAIR TRYING TO STABILIZE ABOVE THE DOWNSLOPE TRENDLINE AT THE END OF NOVEMBER, WHICH IF SUCCESSFULL, WILL OPEN THE LONG AWAITED RETEST OF THE STRONG RESISTANCE AT 1.6800-1.7000 ZONE, THAT HAVE BEEN MADE IN YEAR 2009 AND THEN HAVE BEEN HARDENED IN YEAR 2011.

TO BE REALLY SUCCESSFULL THE BREAKOUT OF THE TRENDLINE RESISTANCE, THE PAIR WILL HAVE TO FOLLOW ONE OF THE TWO VARIANTS BELOW:

  1. CONTINUE GAINING STRONG MOMENTUM WITH EMERGING ABOVE THE TRENDLINE RESISTANCE AROUND 1.6300, THEN DIRECTLY TESTING THE NEXT RESISTANCE AT 1.6700 AS MINIMUM. AFTER THAT THE PAIR COULD START RETREATING FOR A TEST OF THE BREAKOUT AT 1.6300, FROM WHERE IT WILL NEED TO START RISING UP AGAIN.

  2. CONTINUOUSLY RISING UP FROM 1.5900 SUPPORT WITH CONSECUTIVELY FORMING NEW PRICE ACTION ABOVE 1.6300 RESISTANCE. WITH THE CONSOLIDATIONS THAT WILL BE FORMED TO THE WAY UP, THE PAIR MUST NOT CLOSE BELOW 1.6200 LEVEL ON THE WEEKLY CHART.

IF THE PAIR START FALLING FROM AROUND 1.6300 RESISTANCE AND AS RESULT OF THAT DEEPENS BELOW 1.6200 LEVEL, THAT PROBABLY WILL OPEN THE WAY TO RETEST THE SUPPORT AT 1.5900, WHICH IS LIKELY TO FAIL IF GET TESTED AGAIN.

RESISTANCES:

Minor – 

Moderate – 1.6600 | 1.6750

Strong – 1.6300 | 1.6900-1.7000

PIVOT POINT – 1.6125

SUPPORTS:

Minor – 1.6200 | 1.5700 | 1.5600

Moderate – 1.5900 | 1.5450

Strong –

Situation Chart:

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By Mihail Mihaylov

Independent Capital Markets Trader / Equity Research Analyst. Swing to Long term.

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