Bias: Momentum is indicating further losses
Typical for this pair it messes around and then just collapses… the current decline is strong and momentum remains bearish. Therefore do not consider buying unless there is strong bullish signal. Until then the 0.8800-20 area should cap for follow-through below 0.8769 and then the 0.8736 low. Take care around here as there is a chance we could see a correction higher. Next support is at 0.8675, 0.8643 followed by the larger 0.8578 low.
Only an earlier break above 0.8820 would concern but even then I feel just for a correction. Then note resistance at 0.8860 and stronger at 0.8935.
Medium Term Outlook:
17th May: At last this looks like testing the 0.8736 low. Really this should cause a correction but momentum is pretty bearish so take care. Eventually I see risk of a retest at the 0.8578 low once again.
Only directly back above 0.0.8820 & 0.8860 would raise the risk of a deeper correction.
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 available on the Daily Forecast page of my web site in the Trader Package review. (+155 pips)