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 112.30. We have posted a bearish Outside week. This 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.
Intraday (4-Hours): We are possibly forming a bearish Head and Shoulders pattern. A break of the neckline at 107.95 will confirm the next drive lower. However, we have bespoke resistance at 110.03. With the 61.8% pullback level is close proximity, (110.14) selling into this rally offer an ample risk/reward trade.
