Monthly: The pair is seen trading within a bearish channel formation. Trendline resistance is seen at 1.2576. Levels close to the 38.2% pullback level of 1.2522 (from 1.6038-1.0349) found sellers. There has been little net change for the last two months as we hold within the lower half of May’s (2018) trading range.
Weekly: After posting a bearish Outside Week (week 16th April), the major currency pair has broken the Ending Wedge formation to the downside. We trade within the Ichimoku Cloud with price action being mixed and volatile. The base of the cloud (support) is currently located at 1.1516. A 13 (exhaustion count) has been posted on the weekly chart. Levels close to the 261.8% extension level of 1.1490 (from 1.2557-1.2149) have found buyers. However, the long-term bias is for a stronger move lower, there is plenty of scope for a correction to the upside.
Weekly 2: The pair looks to be forming a bearish Head and Shoulders. This offers resistance in the 1.2000-1.2160 zone.
Intraday (one-hour): We look for the first 5 wave pattern (Elliott Wave) to be near completion. The move to the downside should now be mixed and volatile. The pair currently offers trendline support at 1.1580. Bespoke support is seen at 1.1590. Buying dips offers a good risk/reward for a counter trade.
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