Monthly: Since posting large net losses in September 2017 (-395 pips) the cross has moved sideways. We can note spikes for the last 10 months highlighting indecision. The RSI (Relative Strength Index) is close to 50 (mid-point) highlighting we are non-trending. A large wedge formation offers a long-term bearish bias. A break of support at 0.8795, and the measured move target is 0.8300
Weekly: The corrective rally stalled close to the 61.8% pullback level of 0.9045 (from 0.9307-0.8619). Week 27th August posted a bearish Outside Week, often an indication that the corrective rally has come to an end. Dips to the trend of higher lows continue to attract buyers
Daily (1): We have completed a bullish 5-wave pattern (Elliott Wave). Although we have seen a selloff from the 0.8988 high, the cross has failed to break the trend of lower lows (0.8830). A full AB=CD correction from current levels take the pair close to the 61.8% pullback level of 0.9002. We remain bearish over the medium-term
Daily (2): There is potential for a bearish Head and Shoulders formation. A break of 0.8330 and the measured move target is 0.8582. With this in mind, we look to sell rallies or a break of support
