| Resistance: | 0.7845-51 | 0.7874 | 0.7903 | 0.7928 |
| Support: | 0.7812 | 0.7789 | 0.7749 | 0.7701-30 |
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Bias: Mixed – waiting for breaks
Daily Bullish
While losses broke below 0.7722 these stalled at 0.7701 and generated a firm reversal higher. The rally looks as if it should reach the 0.7760-74 area again. However, until this breaks we should be cautious about expecting any stronger follow-through. If seen then look for the rally to extend above 0.7903 and to 0.7928. Take a little care as this could cause a reaction but overall I feel this break higher should then extend towards 0.7981 and to the 0.8037 corrective high.
Medium Term Bullish
14th July: Downside failure concerns but only a break back above 0.7974-80 would maintain the positive momentum for 0.8037 and possibly even the 0.8154 high.
Daily Bearish
While 0.7860-74 caps I feel we can see a reversal back lower so look for a bearish reversal pattern as we approach. Only an earlier break back below 0.7789 would likely send price down sooner and if seen would extend losses back to the 0.7701-22 area. I suspect this should cause a correction. Below 0.7700 extends losses to 0.7636 and possibly 0.7590.
Medium Term Bearish
9th July: The "eventual target" at 0.7633 was achieved more directly than anticipated and thus I feel we should be looking for the 0.7939-0.7993 area as a possible cap for the next leg lower… Only below 0.7722 directly would imply losses to 0.7633-39 before higher…
For a full description of how to use the analysis please see the Analysis page of my website. The prior day's set ups for potential trading levels highlighted in the report are now available on the Daily Forecast page of my web site
