Price action was a little disappointing following the Bullish Engulfing at the start of the week: over the next two days pair retraced all the way back down to the origin point and proceeded to consolidate in a wedge until Friday. On the bright side, the top of the .81 - .865 support zone we highlighted held up nicely and pair now appears to be back on the move, breaking out of wedge consolidation and retesting the psychologically significant .1 figure.
A break above .1/weekly highs, would confirm the wedge break and target (quote from last week's tech) " the record daily close at .1058, followed by the record high just shy of .113. A break above there would target the .14 handle. This is the 200% extension of the recent correction, as well as the point where the leg up from the May lows is roughly double the initial Dec '16 - Mar '17 rally (.1398). Bare in mind though, we are essentially charting the uncharted here and anything is possible: we could easily fail before there, or continue to plow higher. Whatever happens, it's been a great trade already. "
Initial support is yesterday's low at .92, followed by wedge support above .89 and the former resistance / now support zone highlighted last week .81 - .865. In other words, pair is very well supported going forward and only an implausibly nasty downside move would negate our bullish outlook.
A break above .1/weekly highs, would confirm the wedge break and target (quote from last week's tech) " the record daily close at .1058, followed by the record high just shy of .113. A break above there would target the .14 handle. This is the 200% extension of the recent correction, as well as the point where the leg up from the May lows is roughly double the initial Dec '16 - Mar '17 rally (.1398). Bare in mind though, we are essentially charting the uncharted here and anything is possible: we could easily fail before there, or continue to plow higher. Whatever happens, it's been a great trade already. "
Initial support is yesterday's low at .92, followed by wedge support above .89 and the former resistance / now support zone highlighted last week .81 - .865. In other words, pair is very well supported going forward and only an implausibly nasty downside move would negate our bullish outlook.
