Price:   1.6619

Bias:  This may have found its top but only a break below 1.6610 and 1.6550-82 confirms - until then take care

Daily Bullish:

The 1.6733 resistance was broken only by 5 pips and has generated a bearish divergence in the hourly and 4-hour charts. Given the general picture in the Europeans I would like to remain cautious here as there is an alternative… I see key supports at 1.6610 and then 1.6550-80. If we are to see a renewed attempt higher then we'll need the 1.6595-10 area to hold. If this does then a break back above 1.6693 should spur it on to the 1.6738 high again. We should be expecting a correction by then and probably back to the broad 1.6660-80 area before further gains to 1.6786 minimum and I feel more likely the 1.6822-30 resistance. Expect a correction lower from there.

MT Bullish:

14th September: The is an argument for the high to be in place but we'll need a break below 1.6550-1.6610 to confirm. Even then the 1.6482-00 area should support for now. Directly higher from 1.6610 may well provide a much higher target again - minimum 1.6822-30 and possibly higher.

Daily Bearish: 

Having reached the 1.6733-38 target we are on alert that a high may have been seen. The hourly bearish divergence is strong but the 4-hour now quite so strong. There is immediate support at 1.6595-10 and if this breaks look for extension to 1.6550-80. This would provide a pullback which should find it hard to get above 1.6610 and then eventually turn lower through 1.6550-80 and to the 1.6482-00 area. This should hold and cause a pullback higher. Thus, only below 1.6480 would extend losses to 1.6440-54 at least - take care... below extends losses to 1.6352-72.

MT Bearish:

14th September:     I do see potential for the high to have been seen at 1.6738 but until the 1.6595-10 area breaks there remains a slim chance that we could actually be in the middle of a slightly stronger last leg higher… Thus, be patient - only below 1.6600 would see 1.6440-82 but then higher.

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.