Monthly: After posting an all-time high print at 7701, sellers have emerged with an initial selloff of over 400 pips. The next formidable barrier to the downside is 6815 (bespoke support). This is close to a congestion zone for the beginning of 2018. If we close this month (October) at current levels (or below) we will post a bearish Outside Month, often a candle formation that indicates a top is in place.
Weekly: Bearish Outside Candle (see above) posted on the weekly chart. The majority of this week’s initial selloff has been bought into and there is scope for a further corrective rally. Last weeks Marabuzo level is seen at 7525. Bespoke resistance at 7500
Daily: Broken out of the channel formation to the downside. Reverse trend line resistance is currently located at 7507. We are trading within the Ichimoku Cloud. This normally results in intraday trading being mixed and volatile.
Intraday (four-hours) – The move lower can be seen in 5-waves (Elliott Wave) and the initial selloff is assessed as being complete. We are now in the choppy correction higher. Bespoke resistance is located just above the 50% pullback level of 7483 (from 7701-7266). Selling rallies offers a good risk/reward set up