Monthly: The long-term outlook is for higher levels with the pair posting a potential bullish reverse Head and Shoulders formation. A break of 126.70 (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. Trend line resistance is located at 112.15. We have posted a bearish Outside week from the 21st May. With this candle still intact, it offers a mild downward bias.
Daily: The move higher from the 104.62 low trade (26th March) stalled and corrected lower from levels close to the 261.8% extension of 110.87. Although we have seen a reaction higher from the channel support (at 108.68) there is no clear indication that the move lower is exhausted. Strong selling pressure has been seen overnight. A full AB=CD formation takes the par to 107.70. Bespoke support is located at 107.55
Intraday (8-Hours): Broken out of both the Ending Wedge formation and channel formation to the downside. Reverse trend line resistance is seen at 110.20. Bespoke resistance is seen at 110.10. This is our prime short entry.
