The daily chart
shows recent higher highs and higher lows, how ever the new higher high failed to reach January and March peaks thus creating a bearish engulfing
formation. However we do need confirmation of a reversal in order for our short bias to come in play. If we zoom into the lower time frame (1HR) we can see a wedge/pennant forming. Price has currently found support around 1.266 area. A close below this can lead us to potential targets of 1.52. If price holds above this we would consider this as a short term corrective with long targets of 1.2786 - 1.2838 (Jan and March Peaks). Any suggestions welcome.
TRADE UPDATE 13/07/15
Daily high of 1.2789 reached our long target of 1.2786