Daily Pivots: (S1) 0.8736; (P) 0.8773; (R1) 0.8792; More…
3The break of 0.8760 support suggests that rebound from 0.8620 is likely finished at 0.8844. The three wave corrective structure in turns argue that larger decline from 0.9305 is not completed yet. Intraday bias is turned back tot he downside for 0.8679 support first. Break will affirm this bearish case and target 0.8620 and below. On the upside, break of 0.8844 is now needed to revive the bullish case of reversal. Otherwise, outlook is now bearish even in case of recovery.
In the bigger picture, for now, the decline from 0.9305 is seen as a leg inside the long term consolidation pattern from 0.9304 (2016 high). Such consolidation pattern could extend further. Hence, in case of strong rally, we’d be cautious on strong resistance by 0.9304/5 to limit upside. Meanwhile, in another decline attempt, we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside.
