The price has broken below 1.33660, described in last week's analysis as a breakpoint. The break indicates a bearish market which is visible on the chart.
The price on Wednesday has broken below with a strong bearish engulfing bar. The price reached a resistance level at 1.34123, forming a bearish engulfing bar.
The next day the price bounced back close to 1.34123 resistance, but the selling pressure was too intense. That level was a confluence of resistance where downtrend channel resistance with horizontal resistance created strong selling pressure.
Price has dropped to 1.32077 support level, below the small downtrend channel inside the larger downtrend channel. The price stopped for a short time and then moved down to 1.30968. That is the support in the middle of the downtrend channel, and it is not one of the strong support levels we could see lately.
The market is now in bearish sentiment. We can expect the price to fall further down. The current support level at 1.30968 will hold the price for a while, and we could see a slight bounce back to 1.32077 resistance.
That is a level where the downtrend channel crosses the horizontal resistance level, making this confluence area of resistance.
From the 1.32077 level, we could look for bearish signals with a target at 1.29795, the next support level.
That is the level that has shown as a strong support level for the price in the past.
That is why we could see prices drop down to that level from the current level. The price does not have strong support at the current level.
The exit level of 1.33000 is a level that price will not reach easily because of the supply zone that is making selling pressure.
To see the price in bullish sentiment, we should close above 1.34123 daily. Until then, the price will have strong selling pressure, and we should look for sell opportunities.
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