Another indication is that we indeed broke the triangle. And even though its not that good of a triangle, it is still a good sign. I am saying that about the triangle, because if we zoom into the 4 hour chart, we see that triangle was formed, made a false break up, came back, forming another "triangle" (or continuing the previous one) with followed break down. In terms of triangle being in cards is - its not 100% correct, because triangle was broken for the first time, but the fact that it was broken up and it was unable to move up with followed selloff is a good sign for the bears. So in the end it is even strengthening bears stand.
Still, the market was in physiological stage which on charts is described as triangle (more or less), and we should expect at least similar behavior after its break down.
But even if we leave the triangle aside for a moment, we still broke (downside) the line which was a support line. This is an important moment. We were in that formation from the beginning of this month, and now finally getting out of it (hopefully its final), we close the week below the trend line and the consolidation range.
And so, this is a good indication that market may move lower. The only thing we need to do in order to accelerate the move towards 1.1960/70 and 1.1850 is the break of the line on daily chart.
Now lets take a look at the fibo levels in order to show why 1.1960/70 and 1.1850.
