| Resistance: | 1.1050-72 | 1.1100 | 1.1125 | 1.1177 |
| Support: | 1.1008 | 1.0983 | 1.0967 | 1.0939 |
Please read the attached PDF file which provides more detailed analysis.
Bias: Mixed - waiting for breaks
Daily Bullish
This has become a bit messy so we need to take care. There is risk of consolidation and therefore I am concentrating on what I feel would break that consolidation and imply stronger follow-through. The 1.1050-72 area seems to be the close barrier and of course then the 1.1100 high seen a couple of days ago. As long as these break then look for follow-through to 1.1177 at least. Take a little care here. Only breach would maintain the bullish momentum for 1.1206 minimum (again take care here) and then to 1.1277. Above there note next resistance at 1.1320-30.
Medium Term Bullish
3rd September: Yesterday's break higher is threatening a stonger rally now and above 1.1100-25 would probably see a move above the 1.1177 resistance to 1.1320-30. Also note another target at 1.1435.
Daily Bearish
I still can't totally rule out the downside but I feel a break of the 1.0983 level is going to raise the chance of follow-through. There is then yesterday's 1.0967 low but that should be a formality and maintain the downward move through 1.0939 and down to the 1.0888 and possibly 1.0837 supports. I feel the lower is probably more likely but should hold for a correction higher.
Medium Term Bearish
3rd September: What appeared could be a large triangle structure has broken down and thus the downside will only resume if the 1.0926-50 area is broken - then we can expect a return to 1.0790 and 1.0718.
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
