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 35 months looks to have formed a corrective channel. Trend line resistance is located at 1.3833. Trend line support at 1.1692
Weekly: Reacting lower from levels close to the 61.8% pullback of 1.3685 (from 1.4690 – 1.2061). Bearish Outside Candle posted, often an indication that the rally has come to an end.
Daily: The last move higher can be seen in 5 waves (Elliott Wave). Levels inside the Ichimoku Cloud have now found buyers. Bespoke resistance is seen at 1.3335 and 1.3345. With this close to the previous swing high of 1.3360, we expect the recovery to be limited, possibly forming a bearish Head and Shoulders pattern. The 38.2% pullback level is located at 1.3365 (from 1.3666-1.3180
