Bias: Mixed - waiting for breaks but with a stronger preference for the upside
The upside was strong and reached the 79.83 area and I feel there is probably a little more to go. The 78.81-05 area must support for this and generate a recovery back above the 79.35 pivot resistance which would provoke a return to the 79.83 high and then to the 80.04-26 area. Take care here as I feel this can cap. Thus, only above 80.30 would extend gains to 80.53 at least. Then note the next stronger resistance at 81.26-34.
8th September: The triangle broke down completely and as long as 78.81-05 supports I see risk of seeing 80.04-26 intially and while that area could hold cap initially for a correction I feel the stronger risk will be higher towards 81.26-34 - and later potentially higher.
There is an underlying bullishness about this currency pair and I feel the short term only provides downside risk. At most I feel the 78.81-05 area should support. Thus, any stronger bearish stance will require loss of 78.80 and only if seen would that trigger follow-through to 78.46-54 - and below there the next larger support lies at 77.52-79.
8th September: Only back below 77.50 would cause a stronger reversal lower now.
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