Bias: I look for losses to the 1.6230-57 area before turning higher
Yesterday was a bit messier than I had expected but the downside does still look impressive. However, this may still only be limited. Watch the 1.6230-57 area for signs of a bullish reversal pattern as I do feel that this should see some sort of reaction. To get us back on a bullish structure we'll then need a break back above 1.6277 and 1.6330-62. This would bring some stability although in the bigger picture we would still need a break back above 1.6444 to finally bring confirmation of stronger gains.
25th August: It looks as if we may just see the correction edge lower again to the 1.6214-32 area but while that holds - or we get a direct break above 1.6506-44 - I feel the larger uptrend will resume.
As I has expected, the main direction was lower even though the decline was not quite as anticipated. This should follow-through early today into the 1.6230-57 support. Here I would expect a reaction higher. Any surprise break below 1.6214-30 would open the risk of even deeper losses that would then extend below 1.6200 and 1.6156 to the 1.6101 area at least. Again, take care here as this represents another potential reversal point. Also note the deeper support at 1.6013.
26th August: Failure to maintain the upward momentum is threatening a move down to 1.6214-32 but while this holds I feel we'll then see a stronger rally. Below 1.6214 would extend losses to 1.6101 and at most 1.6013.
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.