The rate has exited Pitchforks on several time-frames, and with pressures added by a weekly wedge, we speculate that the channel could indeed be broken, as MACD shows positive momentum to be preserved even on the current downtrend. The 55-week SMA currently merging with the 100-week SMA to give out bullish signals when overstepped, will unwillingly let the pair through 1.5325, causing some disruption to an otherwise smooth lift to the targeted trend-line around 1.5493.
Weekly Chart
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There are, however, a few factors that cast doubt on the reversal. Firstly, a descending triangle can be arguably drawn to dominate the wedge, and secondly – a red cloud above the current movements could toughen the channel resistance, attempting to make levels above unattractive.
Fibonacci retracements of the March 2014 – April 2015 dip have performed rather reliably, and along with Fibonacci time zones suggest that the be 1.6084 level might become significant in January 2017. Movements have additionally exited the Gann angle range, and now appear to be respecting a Pitchfork parallel, which is nonetheless unlikely to keep the rate curbed. A Fibonacci Fan line from the August 2015 July 2016 directs some pivotal pressures towards the channel line, and could be interpreted as a potential retracement or changes in trend.
Daily Chart
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On a daily scale, we can see the rate executing another wave inside of the wedge before targeting areas of significance above. In case the rate continues its intraday motion along the current lines, An evening doji star could be along the way - this could come as a confirmation of the additional wave. Solid support 1,5129 could, however, cause an immediate rally as well. We will have to look for signals if the 1.5146/5129, if the pair exits the consolidation phase by leaving the green cloud. If it is broken, we can say with some degree of certainty that technical indicators will again signal south.
Aggregate Technical Indicators
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