The bears have continued to sell into 1:1 rallies several weeks with the most recent 1:1 (Blue) attracting plenty of selling interest early last week.

The most important level to keep a close eye on in this degree is the 1:1 (Yellow) that comes in at 0.7415, as long as the market stays below this level the current downtrend will remain intact and the bears in full control.


Moving down to the 1 hour chart we can see that the market is currently hitting its head against an important 1:1 (Blue) and 38.2 Fibonacci level that are in close proximity.

If this level can continue to attract selling interest a test of the days low becomes a possibility. However, and break above this resistance zone will see some further short covering take place with the next resistance not seen until the 50 Fibonacci level at 0.7352.


* A 1:1 refers to a current correction being equal in length to a prior correction