Bias: I feel the pullback should deepen to 1.6487-1.6520 before the rally resumes
The 1.6657 resistance worked perfectly and caused a deep correction. I don't think this is quite complete but the nature of this correction could get complex and thus we do need to take care. Ideally I'd like the 1.6487-1.6520 area to provide the low for a bullish reversal pattern but be patient for this. If there is any earlier break above 1.6630 it would suggest a move to retest the 1.6653 high and I couldn't even rule out 1.6691 and this could still be part of the correction. Thus, if direct gains occur then only above 1.6691 would mean we see direct gains with 1.6721, 1.6779-99 and 1.6823 as potential stalling areas but overall I'd look for a strong move to 1.6916 and more likely 1.7016 over time...
14th August: This is shaping up well and while 1.6487-1.6520 supports I'll be looking for gains to the 1.7000-41 area before the next larger correction.
I do feel that we are likely to see a new low here - but not by too much. Ideally it should be to 1.6520 but I can't rule out 1.6487. How it gets there is a different matter as there are quite a few alternative scenarios and one even generating a move to 1.6691 before lower again... Ideally the 1.6530 level should cap and allow a messy move down into the 1.6487-1.6520 area. However, only a break below 1.6487 and 1.6452 would cause me to look for a stronger decline with 1.6394-08 as the next support and 1.6373...
14th August: With the gains seen I feel we can raise the reversal level to 1.6452-87€¦ below signals 1.6394-08 and 1.6260-91.
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