Hello Ken,

I think I would have to agree with you. Additionally, I would like to say that had I been long the pair I would have exited between 5600 and 5700.
Why?? Well, I trade a lot of 123 set ups and as shown by the hourly chart, we had a very good 123 top which i entered short just around the 5700 zone.

Probabilities and pattern recognition tells me that price is either going to fall from here if it closes below the psychological 00 number at 1.5400 or it is going to go up if it can close above 1.5475 with a possible short term resistance target at 1.5600-1.5680.

From the daily chart I would target the 1.5000 zone as my short target, since it seems like a good resistance turned support area.

Whilst I have no bias, it is obvious that the short has more potential in terms of profit and like you, should the bottom fail to hold, then all the longs would look to cover their positions thereby causing greater capitulation due to the selling momentum that would be created.

Of course, we just have to wait and see what happens with this consolidation.

the other possibility is that it breaks support, goes down a little and then reverse upwards.

If this happens, I would be loading the boat to the long side once it closes back above the 1.5500 level.