Technical
Monthly: We had an impulsive rally from the 2011 low (0.9407) to the 2016 high (of 1.4690). The correction lower found buyers close to the 50% pullback level of 1.2049. Mixed trading for the last 28 months looks to have formed a bullish descending wedge formation. We have broken the formation to the upside. Reverse trend line support is now located at 1.3060
Weekly: Although price action has broken the monthly bullish wedge to the upside, the weekly chart highlights a bearish ascending wedge pattern. The trend of higher highs at 1.3275 continued to cap buying. A break of 1.2775 and the measured move target is 1.2250
Intraday (2-hours) – We have posted a double top formation (confirmed on a break of 1.3277). Reverse trend line resistance is located at 1.3290. Bespoke resistance is located at 1.3250. With bespoke support located near the 423.6% extension level of 1.2961 (423.6% is a common extension in commodity currencies) we look for an extended selloff
