On the monthly chart provided, we can see that during 2009 the pair inclined strongly to set its highest at 101.43 and then entered a bearish wave that led it towards 84.79, yet in December the pair returned to trade around the year’s opening levels ending the year in nearly sideways trading. What mostly caught the eye in 2009 was that trading was in general above opening levels at 90.67, yet the rise was fast before the pair reversed to the downside in a contentious motion since April that took it to the lowest set at 84.79.
On the chart above, we can see that the pair inclined to retest the neckline for a classic bearish pattern, where the proposed neckline resides around 101 areas from where the pair head to the downside. Momentum indicators are currently reflecting oversold signals and possibility for upside reversal, yet at the same time we can see that the pair’s formation is still bearish and any trading below 101.00 will keep the downside wave valid.
