| Resistance: | 1.0905 | 1.0923-34 | 1.0987-97 | 1.1073 |
| Support: | 1.0874 | 1.0849 | 1.0780 | 1.0735 |
Please read the attached PDF file which provides more detailed analysis.
Bias: Watch for the risk of further sharp losses
Daily Bullish
While price fell 10 pips short of the 1.1083 resistance I feel that the decline from there probably implies the end of the correction. The pullback has been quite shallow which is quite normal for this pair. Thus only a break above the 1.0934 high would cause follow-through but there is close resistance at 1.0961 and then 1.0987-97 which I feel would cap for a reversal lower. Only above 1.1000 would threaten a retest at 1.1073-83 again.
Medium Term Bullish
10th August: I am less convinced here but if there is any chance of stronger gains then I feel a move above the 1.1021 high must be seen to open the risk for eventual gains to 1.1155.
Daily Bearish
The reversal from 1.1073 was very sharp and this does highlight the possibility that we'll see another push lower today. For the moment we remain in 1.0860-1.0930 consolidation and if this breaks lower directly then I would not be surprised to see another sharp move lower. There is minor support along the way at the 1.0849 low and then 1.0780 but I feel there is every chance we'll see 1.00676-95 at least - possibly back to the 1.0630 low.
Medium Term Bearish
13th August: Cautiously I feel the correction has ended and thus we'll be seeing continued losses back to the 1.0630 low and probably beyond.
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
