Monthly: Since posting large nett losses in September 2017 (-395 pips) the cross has moved sideways. Price action in March (2018) has seen a bearish Outside Month posted and offers a mild downward bias. The RSI (Relative Strength Index) is close to 50 (mid-point) highlighting we are non-trending. A large wedge formation offers a long-term bearish bias.
Weekly: The Ichimoku Cloud continues to attract sellers. An area to note to the downside is 0.8314 (bespoke support). This is close to the 161.8% extension level of 0.8301 (from 0.9299-0.8682) and the previous swing low 0.8297 (week 17th April 2017).
Daily: Mixed results for the 33 trading days. We are assessed as being in a corrective (bearish) channel formation. Trend line support is seen at 0.8674. A move higher from this level (0.8674) and an AB=CD formation is seen close to the 78.6% pullback level of 0.8893. Although this is a corrective formation., buying into dips offer ample risk/reward.
