Bias: While 0.8291-20 caps there seems to still be downside risk for 0.8214 at least and I feel 0.8157-83
The breach of 0.8330 and 0.8302 provided the acceleration lower and I still feel there is a little more to go. However, first thing today having seen 0.8238 support we should see a recovery to the 0.8291-0.8320 area. I see that providing a cap for the downside to resume. Thus only a break above 0.8320 would imply the return to the uptrend with minor resistance around 0.8350 and then 0.8387 en route the 0.8424-27 highs. Above there is the 0.8476 high. Any earlier decline to the 0.8157 low should provoke a pullback higher.
27th August: I feel we should hold off and wait for better buying opportunities and this may not come until 0.8089… Only an earlier recovery above 0.8320-50 would take us back to the 0.8476 highs and then above.
I had warned of the potential for losses and these developed well. There should be more to go with a cap expected in the 0.8291-0.8320 area. From here look for losses to reverse back to this morning's 0.8238 corrective low but be aware that if this declines as sharply as yesterday we could see quite a robust decline again. While I do still recognize the 0.8183-0.8214 support and we do still need to be careful there... there is an alternative stronger bearish target back at the 0.8157 low. Thus take care at the first support and only expect the lower target if this breaks.
27th August: We do have to watch over our shoulders here - a slip below 0.8302-30 would signal 0.8214-30 at least. While I feel it will hold do also note that break of 0.8183-0.8214 would imply stronger losses to 0.8157 initially and after a correction to 0.8089.
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