A Fibonacci indicator has been drawn from the medium term swing low to the current ATM. By looking at this indicator it is clear we have strong support ahead sitting at the $1.44 and $1.48 level which is the GP (golden pocket) of the current swing high and low area (medium term)and a strong support sitting at the $1.23 mark which is expressed through the 78% fib level within the swing area. The higher time frame GP can be seen below and currently sits at around $1, But at the moment the biggest focus is on the swing area GP. In my opinion i believe the price is going to sit below the medium term GP before a formation is formed which results in a break of this level and alternatively reaching all time highs again leading into the 4th term of the bull market. This wont happen in one day as we have to build up support and have a couple levels to fight through, but my bias lies on the side which states that the market has bottomed out and needs to rest before reversing to teh bulls again.
Once we break the 38% fib level which sits at $1.86, there is barely any levels of resistance which would prevent the price moving to ATM in a dramatic fashion.
The are also seen to be tightening up which is never a bad thing as it means that the market is building up for a eventual break out and move to which ever side has the most levels of confluence and retail backing, as most market behave. The can be interpreted in many different ways, and are used by many to give confluence in any way the trader has learnt. For me i generally wait for the bands to tighten up and see that as a strong confluence among many which make me confident in my decision to place a trad. REMEMBER to never place a trade based off one indicator or confluence created thereof, but to have many in order to be more confident and not cut your trade short based on uncertainty.