Hourly chart shows Cypher pattern
Leg D has resumed and it comes around 1.2950 levels (78.6% of XC). Note that Leg C has risen to 1.417. The rule says candle should not close above 1.414. Thus, the formation is valid.
- The hourly RSI , at 43.00, is heading lower, thus indicating room for losses.
- Hence, spot could drop to inverse head and shoulder neckline level around 1.3034, which if breached would expose rising trend line support at 1.2977 (just few pips away from Leg D level of 1.2950).
- On the higher side, a move above 1.31856 would signal continuation of the bullish move that begun post inverse head and shoulder breakout of last week.