Greetings!

What an “eventful” day we had yesterday!…

Crude Oil blows off anything even remotely related to OPEC and cliff-dives into the sea touching under $36.00 per Barrel …

Gold still marches gallantly along…it seems to have its’ shiny metal heart set on reaching $1000 again in the future…

And Her Majesty, the Pound Sterling, contemplates abdicating the Throne to the Euro!

( I can picture my good friend and fellow FXstreet Premium member, Ray …he is gathering fortifications for Buckingham Palace as we speak!…”God Save the Queen or Death!”… 

When we left EUR/GBP, we were contemplating Price action and noticing the Key to our focus was if Price action would break through significant Resistance @ .9300…or if we would begin a corrective sentiment.

We certainly received our answer, didn’t we!

Here is the same Hourly we have been working with all week…

 (click once for captures) 

Looking out a bit…despite the ECB possibly pausing its rate-cutting Cycle in January, the Euro continued its appreciation yesterday against the Dollar and our Lady of the Channel as well ! 

(Gold will be a direct recipient of this overall…as the “uncertain” nature of ECB sentiment will continue to encourage “flight to safety” into Gold and many Commodities…)

Adding a Tool that will be relevant here, such as the oscillator, RSI ( Relative Strength Index), tells us where we are on our Hourly view.

“What?…an actual Tool from CVJ???…Call Interpol…Call Interpol we say!”

All three CVJ Fan Club guys feel it is criminal…since I have never used an Oscillator or an Indicator on the Blog before!

“Off with his Head!” , they say…   

Remember, as I discussed very early on in the Blog, there is a time and a place for proper Tool application and this is one of those times.

“Why CVJ?”

Because our original question here is to see if the Pair is due for a correction.

This particular oscillator is relevant to see if we are at an “Outlier” or “Extreme” level in Price.

At the time of this writing…we are coming off of an “overbought” level with a peak at 87.7 and currently 53.7.

Now comes the Key here…

If your view is Bullish…then we may simply be seeing a small correction here to possible form that hourly “triple top” formation for another re-test of the High.

So we continue to wait for the substantial pullback…which again in my personal view…will be the highlighted Ellipse area of .9050.

Now if you are bearish here…you most certainly will wait to see if that re-test actually does come to fruition!

You want to see…just like yesterday..how Price behaves at the re-test Resistance area.

If Price simply fails to breach, you may receive a highly probable scenario that would be complimentary for your perspective.

We have some scenarios here for “Both Sides of the Fence”…

Just don’t get caught on the “Razor Wire” climbing over it!