First tag of the monthly support last week and heading for...

First tag of the monthly support last week and heading for further testing today.



Couple of difference scenarios below this could play out.

Base case - think we're likely in for some sideways chop and consolidation, testing the range lows at some point, would see quite a high level of rotation forming the base for the next leg higher when news catalysts are ready.




Bullish case - we see $1.35 hold, a push to the range high, some resistance before a break and weekly close above $1.63. In this scenario the price finds good support in the midrange and tends to occupy the top half of the range.

Bearish in red, likely coinciding with a larger market drawdown and very high volatility in US, we'd lose $1.35, test the range low and eventually lose that to go and retest previous high.