On the Daily timeframe price approached the neckline and top of the consolidation range yesterday and pulled back to around 50% of it’s movement, this suggests sensitivity around this region. We look to today’s close as well as tomorrow’s to confirm this as a lower high. However, price remains above the moving averages which it’s using as support and is currently forming its third test of the daily uptrend. If this level continues to support price I still believe it has the potential to extend higher to the 0.7450 region. Should we break this then we can expect 0.7365.
Price used the exponential moving average as support to form a new lower high in line with the refined Fibonacci region and a rejection of the 200ema. This move has been confirmed with price breaking into moving average support with the last candle. As we attempt to break the final level of moving average support we may see a retracement back towards 0.7425 before heading lower towards 0.7350 major support.
We must be weary of volatility in the market today as we await the US interest rate decision. This could however give us the spike to the upside forming that final rejection.