Bias: I look for any pullbacks to remain above 0.8228-45 and for gains to the 0.8390-10 area
Losses extended to just below the lower 0.8170 support but I feel we have seen the low and the main risk is higher. Currently I see potential to the 0.8290-95 area but this should cap and any pullback must remain above 0.8228-45 and this could develop into a complicated correction. Once complete I will be looking for gains to push back above 0.8295-00 and then extend quite firmly above 0.8347 (take a little care) and more likely the 0.8390-00 area. I feel this will hold for a little longer and cause another pullback...
18th August: I feel we have seen a flat correction and thus the recovery from 0.8157 should now see gains above 0.8290-10 and then to 0.8390-00 and eventually back to the 0.8469-76 highs.
I am not that keen on the downside. I see potential for a quick sale from around 0.8290-95 but no further than 0.8228-45 - and probably the higher. Indeed, there could be a degree of range trading around here. Thus, any stronger bearish stance will require a break back below this morning's 0.8228 corrective low. If seen then look for a return to 0.8194 and the 0.8157 low...
18th August: It was a bit deeper than anticipated but I feel yesterday's low was the most we'll see. Thus only back below 0.8157 would cause a stronger bearish structure for losses to 0.8089 at least and potentially 0.7959 and 0.7880.
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.