| Resistance: | 1.0366 | 1.0400 | 1.0417-22 | 1.0442 |
| Support: | 1.0295-05 | 1.0277 | 1.0248 | 1.0178 |
Please read the attached PDF file which provides more detailed analysis.
Bias: Mixed - waiting for breaks but remember we are in the final stages of a weekly cycle low
Daily Bullish
The 90.20 level held a second time, apart from 1 extra pip lower, and spent the day looking supported. The top at 91.12 looked as if it should be enough to send it lower but we're back close to that level and if we see this break then look for follow-through to 91.40 which I feel will hold fast and cause a reversal back lower. In the mean time the 90.61-78 area looks set to support and we could see some range trading ahead of European open. Only an unexpected break above 91.40 would trigger extension higher to 92.03-25 which would hold.
Medium Term Bullish
15th September: Any push higher now should be the last in this correction and stall at 1.0422-56 (max 1.0460-88.) Only a break above here would negate the expected decline to 1.0040-72 where I feel a long term base will be seen.
Daily Bearish
Losses began from the 1.0417 high and have reached 1.0328 thus far and while 1.0360-66 caps I feel we should see a dip to around 1.0295-05. However, I feel this may well hold on first test. Therefore, only directly or after a pullback to the 1.0346-66 area would I expect a stronger follow-though lower. First support is at 1.0248 and while I feel this should break quite easily do observe this carefully. Below 1.0245 maintains the bearish momentum for 1.0139.
Medium Term Bearish
16th September: The 1.0320-40 area supported for the expected correction and now this is a complete the final move lower should develop. Match this with the targets in EURUSD, but I see the larger risk at 1.0139 and then 1.0040-72. Observe these areas for a bullish reversal pattern.
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
