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