Bias: Take While 1.3515 supports look for 1.3606 initially before a second pullback and final rally to 1.3650-65
The 1.3394-1.3423 area held perfectly and has generated a steady recovery and I still feel this has some way to go. However, do not expect this to be direct - more likely quite choppy€¦ I'm looking for the 1.3515 area to support on the current decline and for a move higher to 1.3606. Once again look for a correction from there back to 1.3535-55 and then back higher again to the 1.3606 area a second time, a correction and then a final rally to the 1.3650-65 area which I feel will cap for losses.
18th May: I am naturally disappointed with the break lower but it seems as if 1.3720 satisfied the lower target at 1.3695 and thus we're in a pullback but which should remain above 1.3394-1.3423 but then suffer a sideways consolidation below 1.3665-85 before the next leg higher to 1.4280-00...
We're seeing the correction higher as expected and there will likely be short term selling opportunities at the 1.3606 resistance but then a larger opportunity by late today up at the 1.3650-65 area (max 1.3685). I feel this will be strong enough to take price lower in another choppy decline to the 1.3440-60 area once again. Only a break below 1.3440 would threaten the 1.3407-22 area again. I feel it will still hold. However, note next support at 1.3342...
18th May: I still remain MT bullish look for 1.3394-1.3423 to hold this correction - at most 1.3342. Thus, only a break of 1.3340 would highlight a much more bearish structure and therefore initial losses to 1.3245-62 but later much lower.
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