Monthly: Trading within a bearish channel formation. Trend line resistance is seen at 1.2638. Levels close to the 38.2% pullback level of 1.2522 (from 1.6038-1.0349) continue to attract sellers.
Weekly: Mixed trading for the last 12 weeks. This week’s price action has seen the pair break the Ending Wedge formation to the downside. Bespoke support is located at 1.1913. This is close to the 161.8% extension level of 1.1897 (from 1.2556 – 1.2149) and is our next medium-term target zone. Reverse trend line resistance is seen at 1.2330.
Daily: Broke through the triangle formation to the downside. Previous support is located at 1.2154. Bounces from this area are likely to form a descending triangle pattern (lower highs). Bespoke resistance is located at 1.2300 and offers a good medium-term short entry level.
Intraday (four-hours) – Broke through the wedge formation to the downside. With the selloff stalling below the 261.8% extension level of 1.2209 (from 1.2413-1.2336), and the possible completion of a bearish Elliott Wave (5-waves), we look for a bounce to sell into rallies
