Price: 1.4249

Bias: I look for a dip to the 1.4189-01 support before a rally to 1.4301-27 and then back lower again

Daily Bullish:

It looks like we'll get an initial repeat of yesterday with downward pressure expected to take price back to the 1.4189-02 support area. I feel this will hold and from there look for price to break higher and this time break through yesterday's 1.4273 high to extend into the 1.4301-27 range. However, this should cap and cause a move back lower. Thus, any stronger bullish stance will require a break above 1.4330 and only if see would it extend gains through to 1.4359 at least and I suspect the 1.4406 resistance. This should then cause a correction. Above there note the 1.4445 high.

MT Bullish:

20th August: It looks more likely that we're seeing a stronger move higher. However, it will still be prudent to take care around the 1.4406 area in case we revert into a larger sideways consolidation. Above 1.4406-45 would take price directly higher towards the 1.4717 high & maybe 1.4844.

Daily Bearish:

The 1.4189-1.4212 area held yesterday and I still feel the 1.4189-02 area will hold a second time today. The better selling opportunity should come in the 1.4301-27 area so watch for a bearish reversal pattern there. Only an earlier, direct break below 1.4170-89 would suggest a deeper decline and if seen look for this to extend back into the 1.4048-1.4084 range. Below there is also support around 1.4014.

MT Bearish:

20th August: There is now a strong chance that the downside will be very limited. The only risk is a cap around the 1.4380-06 area so watch this with some care. To confirm a reversal we'll need a break below 1.4170-89.

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.