Early drop showing the signs of a bearish day. Or will it bounce back and try to break again?
Early drop showing bearish sign
Since we spotted a divergence on 4 hours the pair has dropped more than 100 pips. Call it a successful divergence or just a drop from strong rejection area, bears have been winning so far.
Since the opening today this pair has dropped more than 50 pips. We expect it to bounce back up near the 50 MA and drop again from there. There is a strong support near 186.382. It is now more likely that the pair will travel to that area and bounce back up from there.
So the mood remains bearish unless it truly breaks above 50, then we will look for a buy set up.