Bias: Momentum remains bearish so look for losses to reach the 82.69-81 area minimum and possibly 81.96-13
Both hourly & 4-hour momentum looks pretty soggy and this should bring additional losses. The first area that may hold is the 82.69-81 zone but unless a bullish divergence develops I can't see this bringing any strong reversal. So break below 82.69 would extend losses to the 81.96-13 area. Here I feel there is a stronger risk of a correction higher so look for a bullish reversal pattern. Only an earlier break back above 83.35-45 would help a correction but until there is a break above 83.70 and 84.20 I can see any recovery being anything but a correction. However, note next resistance at 84.58-79.
27th October: We now need a break above 84.80-85 to retest 85.31 at least and possibly 85.72 and above there to the higher target at 86.52 target.
This does look particularly bearish and probably needs both USDJPY and AUDUSD to see losses today. Early support is at 82.69-81 and this is likely to cause a temporary pullback, but I think it will be just that - temporary. While price remains below 83.35-45 (and may not quite reach there) I feel the larger risk is for losses to break below 82.69 to reach the 81.96-82.13 area. Take care as I feel this has a stronger chance of causing a slightly longer correction. Next support is seen at 81.29 & 80.99.
28th October: Losses have already broken below 83.29 and this opens risk of 82.69-81 minimum and more likely 81.96-13 which can cause corrections. Overall, while momentum remains bearish keep in mind the maximum downside expected at 80.99-29.
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