Monthly: The long-term outlook is for higher levels with the pair posting a potential bullish reverse Head and Shoulders formation. A break of 127.50 (neckline) is needed to confirm the formation. There is scope for a deeper correction, in an AB=CD formation, toward 92.00. This timeframe offers a mixed picture.
Weekly: Holds within a corrective channel formation. Although we have seen a reaction higher from the channel base, a full AB=CD formation is located at 103.50. This is close to the 78.6% pullback level of 102.98 (from 98.70 to 118.69). Higher time-frames offer no DeMark exhaustion or correction counts.
Intraday (8-Hours): Broke out of the Head and Shoulders formation to the upside. We are trading within a bullish Channel formation. Bespoke resistance is located at 110.00 and we have seen a reaction lower yesterday’s after the FOMC minutes. Channel support (pink line) is located at 107.80. With bespoke support seen at 107.55 this is our first prime support.
