EURUSD – Starts the correction higher

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 10 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 16^th April) the major currency pair has broken the Ending Wedge formation to the downside. Seven 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. This timeframe offers a Morning Star formation and suggests dips will be bought. All last week’s initial losses were bought into. Bespoke resistance is located at 1.2060, close to the 50% pullback level of 1.2034

Daily: Levels close to the 261.8% extension level of 1.1490 (from 1.2557-1.2149) have found buyers. Bullish divergence can be seen on the daily chart (chart makes the same low while the oscillator makes a higher low), often an indication that the selloff is stalling.  Posted a bullish Outside Day on Thursday (last week). There is scope for mild losses, but we look for dips to be bought