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