Bias: I suspect we'll see losses today towards 1.6277-1.6313
Losses didn't manage to follow-through yesterday and this has pushed price higher towards the 1.6631-62 highs. Indeed, a test of the 1.6662-80 area does look likely. However, I am aware of the hourly bearish divergences and I really don't think we'll get a powerful follow-through today. Thus, only a break above 1.6680 would trigger more direct gains than expected and if seen it should allow gains to reach 1.6755-80 and possibly the 1.6834-49 target.
26th June: Well, we saw losses but the manner of the decline looks corrective and until the 1.6188-1.6232 lows are broken there is still risk of follow-through higher to the 1.6840-50 favored target area.
While the risk of a stronger rally to 1.6850 is possible I feel this will not come in one move. Thus the 1.6662-80 area should probably cap today for a correction lower. Thus watch for bearish reversal patterns. I feel that this correction has potential all the way to the 1.6450-70 area. A break below 1.6580-85 would be a first sign and if seen would risk follow-through below 1.6542 and 1.6507 to the 1.6450-70 target support. Only below 1.6428 would begin to suggest a stronger move lower with 1.340-80 area the next support...
26th June: Well, losses reached the 1.6232 level and we are still to break below 1.6188 which will be the final key to the downside. Until then we should take a more cautious approach as if anything there appears to be more upside risk.
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