Last week’s move certainly caught my by surprise as I expected the sell-off to continue. For the upcoming week, I have re-established my levels and continue to remain bearish on this pair.
This pair formed a double top and finally broke down below. The Atlanta Federal Reserve’s GDPNow forecast model on Monday showed the U.S. economy growing at below an annualized 1 percent in the first quarter, down from 1.4 percent in the fourth quarter. Earlier today, Core PCE Price Index disappointed posted 0.1% down from the previous month’s 0.3%.
Testing the recent trend-line, this pair is back on track with its bearish momentum. The recent double top formation and following sell-off has caused price to temporarily stall.
I currently recommend caution when shorting this pair with the current wedge consolidation. Nevertheless, this still remains a key pair that I will be watching out for.