Good observation. We won't know of a reversal until tomorrow. By rule you can only go 1 direction per day, and a new low was hit today. If it closes at .85 or better tomorrow, we can assume a reversal (as long as .65 is not hit intraday). The long straight line is called a pole. A low pole reversal is usually a very good trading opportunity. a 3 point reversal is a buy signal.
Even if the long term downtrend continues, it could go as high as 1.35.
8……………………………….……..1.65…( 8= August, 2008)
O…………………………….…….…..1.60
O…………………………….….……..1.55
O…X…………………………….….…1.50
O…X…O…X………X…………….…1.45 This is a double top at 1.45, indicating resistance to 1.50
O…X…O…X…O….X…O………….1.40
O…X…O…X…O….X…O………….1.35
O……..O………O……...9………….1.26
………………………….….O..……….1.25 <-Sell Signal
..........................O..........1.20 <-Stop point recommendation
..........................O..........1.15
..........................O..........1.10
..........................O..........1.05
..........................O..........1.00
..........................O............95
..........................O............90
..........................O............88
..........................O............80
..........................O............75
..........................O............70 Low of Day