Monthly: Trading within a bearish channel formation. Trend line resistance is seen at 1.2583. Levels close to the 38.2% pullback level of 1.2522 (from 1.6038-1.0349) attract sellers. We trade to the lowest level in 9 months. This area has acted as resistance in 2016 and 2017 (1.1714 and 1.1616) and now acts as support
Weekly: After posting a bearish Outside Week (week 16th April) the major currency pair has broken the Ending Wedge formation to the downside. Six weeks of net losses have resulted in signals for sentiment being at oversold extremes. A 13 (exhaustion count) has been posted on the weekly chart. Levels close to the 261.8% extension level of 1.1490 (from 1.2557-1.2149) have found buyers.
Weekly 2: A move higher form current level and we possibly form a bearish Head and Shoulders (right shoulder still to form). We have bespoke resistance at 1.1994, trend line resistance at 1.2024 and the 50% pullback level at 1.2034 (from 1.2554-11513). Buying dips now offers reasonable risk/reward.
