THE PRICE ACTION HEADING FOR THE LOWER RANGE OF THE DECLINING CHANNEL PATTERN?
The illustrated view of RS downside to SA1**, followed by gains to R3 remains valid.
This should remain part of the larger R3/SA1** consolidation phase.
Interim downside is extending to cluster support at SA1** to complete the RS bearish correction.
Important SA1** support is expected to hold during the downside, followed by meaningful gains back to at least R2.
The eventual outcome of the R3/SA1** consolidation would be a large bull trend to new highs, similar to the previous bull trend.
Target and Re-assessment Levels:
Important Levels: 1.0520/1.0470
Primary Trend and Target Levels: Gains off 1.520 to 1.1110
Monthly Range: 1.0870/1.0540
Prevailing Trend and Target Levels: Downside to 1.0540 and 1.0520
Technical Rating: Medium
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