For those that were unable to collect this morning (EST) on the upward trend that continued to be formed last week, we may see another option to gain a high amount of pips.
Today's high seems to match the downtrend resistance line formed from the June 22 high, possibly implying that we have met our highs and shall be proceeding downward.
We can see that tracing our data from June until now, there is a definite down trend occuring (highlighted in YELLOW), and keeping this in mind ,we would expect any movement at this point to continue following the trend and proceed towards 1.10 and below.
Our first major support to watch would be the Fib 38.2 (1.10480). Any closes proceeding this point may further confirm our downward movement.
It is also interesting to note the values and their direct relation to movement over the last month. We have highlighted any major breaks above 70-RSI and noted the perfect allignment with the continuation of a downward movement (i.e. implying severely oversold values).
Keeping this in mind, we are currently facing an right below 80, further confirming our suspicions on correction.
We are holding a SHORT position at 1.1110 and will be closely monitoring any breaks to our resistance points produced by Fibonacci or previous resistance levels.