Price:   0.8737

Bias:  While 0.8714-19 supports I look for a final move to 0.8801-06 (max 0.8820) before reversing lower

Daily Bullish:

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.

MT Bullish:

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.

Daily Bearish: 

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.

MT Bearish:

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..

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 now available on the Daily Forecast page of my web site.