The pair has formed a Pennant Pattern. A Pennant is a continuous pattern.

It's similar to symmetric pattern with 3 touches or a weekly pattern; a breakout is usually in the previous trend. A failure in pattern has a very steep move which has given more return than actual breakout.

In the current scenario the pair was trading in an downward trend and a small retracement is seen on the upside a breakout is expected on the downside which is the origin trend of the pair.

Trend closing below the 10 day EMA would be a confirmation to the trend.

RSI is trading near its strong resistance a breakout on the upside will be an warning.

Advice : Trade as per breakout. ( Expected breakout Downside )

PENNANT

Sep 08 2022