Bias: While 0.8714-19 supports I look for a final move to 0.8801-06 (max 0.8820) before reversing lower
Price rallied as expected and even moved above the 0.8720 resistance to reach the low end of the 0.8745-60 resistance. We have seen a pullback from there and it may well be complete at 0.8719 though we should allow for 0.8708-14. From this area I am looking for a move back to retest the 0.8748 high and then we may see a sideways consolidation. However, once complete I feel the final target is at 0.8800-06 - and perhaps we should allow for 0.8820. Look for a bearish reversal pattern to develop from there. Also note the higher target at 0.8861.
14th September: We have seen a pullback as expected but while this holds above the 0.8516-45 area I will expect the rally to return to the 0.8672 high and after a correction I feel the eventual target should be in the 0.8803-21 area and maximum 0.8862.
I feel we should be focusing on the 0.8800-06 area for a major reversal. Before that the 0.8708-19 area should be the base and only a direct break here would cause a more immediate decline. If seen then there is minor support at 0.8680 and once broken the decline could be quite sharp to the 0.8565-85 area where it should pause for a correction. However, assuming we see th move too 0.8800-06 we should be looking for a bearish reversal pattern to begin developing and trade the break.
17th September: The additional gains are bringing us closer to the 0.8800-06 favored target though we should also note 0.8820 and 0.8861. I feel this will be a major top and initial losses should reach 0.8565-85 quite quickly and below that the 0.8250-00 area beckons..
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