Last time I suggested:
The market has seemingly chosen the DT (Double Top) rather than the HH (Halfway Hesitation)...though I am sill not entirely convinced looking at the shape of it. I have placed an 'X' (0.7250) at the projected target for such a move should it carry on, but please note there are significant obstacles along the way.
Initially it looked like we would head to the 'X' directly but then prices hit the key 2016-to-date 50% Fib and they bounced up to just sort of the post bow-tie formation (more on that later) of the Short/Medium, Medium and Long MAs before coming off again...though without the vehemence of before.
So what now? Well the 'X' at 0.7250 is s i l l there, we had a failed key reversal up last Tuesday which is indicative of a bearish tinge to this market plus we have lower highs and lows, another bearish sign. We also have the previously mentioned bow-tie formation of MAs. It happened about the 17 May so on such timing the reaction should kick in between the 7 and 1 June. It is not overtly bearish as a pattern but I don't think you can look on it any other way, at least for the moment...so we'll see. We'll also see if the freshly drawn bearish Schiff Pitchfork over recent action actually has any teeth.
Looking at the MAs I'd normally move the bullet point above back into neutral from last month's bearish. However, with the bow-tie formation above, I'm minded not to and I'll leave it for one more month.
Support is currently at 0.7406, 0.7390, 0.7368, 0.7329 - 0.7326, 0.7277 (dynamic), 0.7250, 0.7210 and 0.7151 - 0.7142.
Resistance is currently at 0.7448, 0.7464, 0.7475, 0.7488, 0.7494, 0.7517 - 0.7527 (dynamic), 0.7537, 0.7570 and 0.7588.
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