| Resistance: | 1.0672 | 1.0696 | 1.0710-22 | 1.0742 |
| Support: | 1.0630 | 1.0610 | 1.0575-90 | 1.0538-54 |
Bias: I see potential for initial losses to 1.0575-90 max 1.0538-55 before another rally
Please read the attached PDF file which provides more detailed analysis
Daily Outlook
The bullish structure developed well with a pullback from the top of the 1.0610-30 area that provoked the correction back to just above the 1.0560-70 support. This provided the base for a test to the 1.0672 high. I remain bullish but feel we require a correction before the rally can extend. Below the 1.0630 support should provide the trigger for extension lower to 1.0575-90 minimum. From this point take care. There is also support around 1.0538-54. We should be looking for a corrective low to develop somewhere in this broad range so watch for bullish trade set ups that would fuel the next rally.
Only directly above 1.0672 would extend gains to the 1.0710-22 area. Take care as this does have potential to hold so watch momentum carefully. If this breaks then look for stronger follow-through to 1.0811 and the 1.0851 high. Below 1.0530 would allow price to edge lower to 1.0518 and below there to the 1.0471 corrective low.
Medium Term Outlook1st September:
The weekly sideways consolidation still dominates the larger picture and if anything it looks more like continuing - and erratically. I feel we shall either see a cap around 1.0722 or if that breaks at the 1.0851 high again. However, from one of these resistance areas look for price to fall back into the larger range...
For access to my daily support & resistance levels please see the Daily Forecast page of my web site.
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 are now are available on the Daily Forecast page of my web site within the Trader Package report reviewing the support & resistance levels. +140 pips)
