Monthly: The cross made an impulsive selloff from 2.1116 (2008 high) to 1.1605 (2012 low). We have been trading in a bullish corrective channel formation for the last 68 months. Levels close to the 50% pullback level of 1.6327 have attracted sellers. This area has been pivotal since the start of 2004.
Weekly: Highlights a Doji Style candle being posted from the high (week 26th March 2018). We are assessed as being in a bearish ascending wedge formation. This is ‘backed-up’ by bearish divergence (chart makes a higher high while the Relative Strength Index makes a lower high), often a sign that a top is in place. A break of trend support at 1.5613 and the next relevant support is at 1.4400
Daily: Bearish Outside Day posted from the 1.6192 high. We have seen a recovery higher but the rally is stalling close to the 61.8% pullback level of 1.6033 (from 1.6192-1.5776)
Intraday (one-hours) – Looks to be forming a bearish Head and Shoulders. With the one-hour chart highlighting a DeMark 12 (13 is exhaustion) we look to sell into any further rallies. Although signals are far from strong, this short-term set up could lead to a long-term play. It offers ample risk/reward
UPDATE – The move to 1.6120 triggered our short trade (08:19 23/04/2018)
UPDATE – Stopped (03:04 25/04/2018)
