Price: 1.6200

Bias: While 1.6223-41 caps I look for losses to extend to 1.6039-50 and later 1.5982

Daily Bullish:

The 1.6379 high provided the final high and therefore the risk is lower. Only a break back above 1.6341-67 would cause a pullback or perhaps deeper reversal. If seen there is minor resistance around 1.6293-04 and 1.6327 ahead of 1.6327 and the 1.6379 high. If we see this then the 1.6428-52 resistance needs to cap else the MT picture will turn more bullish. Next resistance is at 1.6489 and then 1.6544.

MT Bullish:

10th July: Only if the 1.6552-89 resistance breaks followed by the 1.6544 corrective high would price then receive a lift back to 1.6662 and 1.6743 en route new highs.

Daily Bearish:

While the downside wasn't as strong as I would have liked to have seen the progress is encouraging and while the 1.6223-41 resistance area caps I feel we shall see additional losses through Friday's 1.6155 low and onto 1.6081 at least and I tend to favor 1.6039-50. This should produce a correction only but could reach as high as 1.6280-00. Overall I look for a move to retest the 1.5801 swing low by tomorrow or Wednesday.

MT Bearish:

10th July: While 1.6452-89 and max 1.6544 caps we can see further losses. Below 1.6192 will assist and this should provide a retest of the 1.5982 low. Below that the next area to come into focus is the major swing low at 1.5801€¦

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.