Price: 1.6362

Bias: Slightly mixed - waiting for breaks but the underlying move remains bearish

Daily Bullish:

Yesterday's strength was a little stronger than expected but doesn't destroy the underlying bearish view. I do feel we saw the corrective high yesterday at 1.6507 and I see only a small chance we may just see a blip higher to 1.6524. Thus wait for that break before getting too bullish. Before that to generate any potential rally we'll need a break back above the 1.6400 area and if seen should mean that there is chance of extension to 1.6443-67. I feel this should probably be the highest we see today. Thus only above 1.6467 opens the risk of a return to the 1.6507-24 area and only a breach here opens up stronger gains towards the 1.6621-62 highs.

MT Bullish:

17th June: The decline is developing well and only a move back above 1.6467 and 1.6543 would put us back on a more bullish track.

Daily Bearish:

While yesterday's high was higher than I thought it would be it doesn't alter the bearish view. However, we should be aware of the risk that we could see a small sideways consolidation. If we see the first move today as higher to 1.6467 I feel this would provide a good selling area for losses but within a range and probably limited to around 1.6237-51. If we don't see the rally to 1.6467 first and instead see loss of 1.6341 there is more chance we'll see losses extend through 1.6320 and down to the 1.6237-51 area. Take care there as it could cause a correction. Next support is at 1.6208 followed by 1.6114-40 and 1.6075-94.

MT Bearish:

15th June: We should have seen the high now and we should be seeing a larger decline back to the 1.5801 low and lower. However, the broad 1.5801 area should provide a pullback before the additional losses.

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.

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