In view of Karen Jones, analyst at Commerzbank, the market has sold off to and so far held the base of the near term down channel at .8387 currently.
Key Quotes
“The new low has not been confirmed by the daily RSI and we would allow for a near term rebound towards the top of the channel at .8547. Above here rallies will find initial resistance at the .8606 22nd November high and this guards the .8717 4-month downtrend.”
“Only below .8387 will target .8314/04 the April 2017 low and potentially the .8224 the 55 quarter moving average. Some caution is warranted however as the daily RSI has not confirmed the new low, the intraday RSI has also diverged, we suspect that the downside is limited.”
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