Price:   1.4574

Bias:  Cautiously while 1.4559-66 holds I still look for the rally to extend to 1.4618-26 before lower

Daily Bullish:

Yesterday was a rather whippy and erratic day and does seem to be indicative of the fact that we are very close to an interim high. However, I do feel there should be one more attempt. For this the 1.4559-66 support should ideally hold. From here a break back above 1.4606 would extend gains to the 1.4618-26 area (max 1.4636) where I feel we shall see the beginning of the long consolidation I have been expecting. Thus, any stronger bullish stance would require a break above 1.4636 and if seen would extend the rally to 1.4717 and 1.4752.

MT Bullish:

11th September: The more direct gains may have dented the chances of reaching the preferred 1.4844 target. We should therefore be watching the 1.4752 resistance. We may see reversal from here - or max anywhere between 1.4804-44. Before that 1.4626 should cause a correction.

Daily Bearish: 

The 1.4497-07 area provided support yesterday and rallied to new highs at 1.4606. I don't think this has quite finished and feel that while 1.4559-66 supports we shall see a better selling opportunity around 1.4626. Thus look for bearish reversal patterns in the 1.4620-40 area. Only an earlier break below 1.4555 would suggest another dip back into the 1.44979-07 support - and probably maximum 1.4467... However, also note support at 1.4437 and 1.4402.

MT Bearish:

10th September:    The initial target is edging higher and looks as if we may be seeing 1.4618-26 before the sideways consolidation. Eventually we should be looking for a major high as early as 1.4752 or possibly 1.4804-44. Only an earlier break of 1.4400 would be directly bearish.

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.