Last week we saw an upside breakout of our accumulation/consolidation zone between 1.16600 and 1.17200 with price accelerating up to 1.18400.
The close of trading last week on the market left us at an interesting level where, in my opinion, we could see 2 possible setups.
A break of the CTL and weekly resistance pushing price back up to retest last weeks highs after a nice rejection of our 61.8 retracement level of last weeks bullish breakout which was also the upside boundary of the consolidation zone mentioned at the beginning of this article.
We could also see price drop back down into the consolidation zone to accumulate further upside strength before it has the momentum to break last weeks highs.
Overall I think looking at higher timeframes a bullish move is overdue but it may take a further HTF consolidation period to accumulate enough orders to provide sufficient momentum for upside price action.