There is still potential support at the 1.3608 low down to the 1.36 psychological pivot. However while the dips toward this low have been bear-traps since consolidation started in November, this time a rebound from this area could be a bull-trap. It would become very apparent that the bears are in charge if the rebound is weak and fails to break back above 1.37.
Looking at the daily chart, today's bearish candle is turning out to be very indicative of a bearish continuation because of its engulfing nature after a week of consolidation. While the 61.8% retracement level at 1.3563 might be a temporary support, the market is looking at a slide toward 1.3380, near 78.6% retracement and a previous pivot. A more aggressive outlook is the 1.3145 October low.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources