Last time I wrote:
'There does not at this time appear to be enough strength to form a full DT(Double Top)...the MAs are spent. Additionally, there does not seem to be enough to cause a HH(Halfway Hesitation)...'.
I suggested then the third way of going sideways. However, that did not resonate with the market as it has seemingly chosen the DT rather than the HH... though I am still not entirely convinced looking at the shape of it. I have placed an 'X' at the projected target for such a move should it carry on...but please note there are significant obstacles along the way. Firstly, the positive things for a try lower - we are below all MAs, two are heading lower and two are sideways, we are below the key 50% Fib of the Apr 2016 - May 2016 move (0.7488) with two consecutive closes underneath & there is a lot of Bearish ammunition formed over the topping period Feb - early Apr. Now the negative things, apart from the shape of the market, the two key Bullish elements are the reaction to testing the 50% Fib of the whole move Nov 2016 - Dec 2016 at 0.7464 and the admittedly Bearish Centre Tine of the Apr 2016 - May 2016 Schiff Pitchfork (currently 0.7380) which has been the driver for the market since its inception.
If these are taken out (and I can accept that happening) then the DT mentioned is live and 'X' may well be a likely target for it. A lot will depend on the next few days...we've possibly formed a lopsided Bullish Stick Sandwich Pattern over the last three days of last week as the market rejected the initial thrust on a consecutive closing basis under 0.7464... though we haven't effectively pushed back up over 0.7488. Nevertheless, we are below all MAs and that places an obligation to move to a mildly Bearish bullet point above., just keep an eye out...only consecutive closes over the Downtrend (currently 0.7559) would push this into neutral whilst consecutive closes over the very recent 50% Fib at 0.7593 would push it into Bullish.
Support therefore is currently at 0.7464, 0.7448, 0.7437, 0.7406, 0.7390, 0.7380(dynamic), 0.7329 & 0.7250. Resistance is currently at 0.7488, 0.7525(dynamic), 0.7538, 0.7550, 0.7556(combined), 0.7570 & 0.7593.
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