Monthly: We had an impulsive rally from the 2011 low (0.9407) to the 2016 high (of 1.4690). The correction lower found buyers close to the 50% pullback level of 1.2049. Mixed trading for the last 32 months looks to have formed a corrective channel pattern. Price action in September offers a bearish Outside Month, often an indication that a temporary top is in place.
Weekly: Although the pair broke the trend of lower high (in June 2018), levels close to the 50% Fibonacci of 1.3375 (from 1.4690-1.2061) found sellers. Reverse trend line support at 1.2842 has given way (for now)
Weekly 2: Broken out of the wedge formation to the downside. The pattern has a measured move target of 1.2247. Bespoke support is located at 1.2440. These are our medium-term target areas
Intraday (2-hours) – A strong ‘gap open’ on the 30th September has left a void from 1.2908 to 1.2847. Gaps have a tendency to be filled. With bespoke resistance located at 1.2895, previous support (now resistance) at 1.2884, this is assessed as a good area to get short.
