The 150.70 handle served as a pivot for the pair between 28 March and 28 April. The sub 150.70 close on 27 April suggested that a retest of the area as new resistance would encounter sellers. Sure enough, on Monday the market reached the 150.70 handle just before hitting a wall of offers and a session high of 150.85. The next 4 sessions delivered down days and the pair is still 300pips below the 150.70 handle. On Friday a low of 147.05 was reached before the pair bounced 60pips into the close with NFP results. In my opinion the retest of channel support at 147.00 area is a clue, but this DOES NOT mean the pair will fall further next week as long as 147.00 holds as support and in fact I’m anticipating some strength early next week. However, the pair is starting to “lean” on channel support and looking back to February and the way buyers failed to challenge February highs during the latest rally that topped out on 13 April a lower high was made thus far. For those traders not yet in a sell, you may want to wait for a daily close below 147.00 to secure a favorable risk to reward.