This situation is clearer if we look at the monthly and weekly charts of even just a week ago. In the monthly chart (chart 1) snapshot, taken on Friday September 9 2017, we see a strong downward move. This move was key for two reasons: one, it was below the 50% Fibonacci level, and two, it established a new low after several previous attempts at that price area.
The 50% Fibonacci level stood at 109.9 and although two previous attempts of a break had even reached the next Fibonacci level in previous months, neither of those moves or the other attempts had managed to close below 109.90, apart from a marginal close below that level in August.
The weekly chart (chart 2) of that week was also making a strong case for a continuation of the bearish move as it showed the pair reaching new lows well below a 50% Fibonacci level of 111.35.
If we look at the sna…