Price: 1.1024

Bias: While there may be early range trading between 1.1000-50 (allow for 1.0980) we should see price end lower

Daily Bullish:

While not particularly emphatic, yesterday's price action does fit more into a bearish scenario. First thing today I feel there is risk of 1.1000-50 range trading with minor risk of slippage to around 1.0980 but then back to 1.1050. Thus if we are to see any stronger pullback then we'll need a break above 1.1050 and if seen would extend gains through 1.1077 and 1.1107 and back to the 1.1125 high. If seen we should also keep in mind the larger resistance at 1.1174-1.1235.

MT Bullish:

18th August: Probably we have seen the top but keep in mind the 1.1177 and 1.1235 resistance areas - only above the higher would suggest a stronger rally.

Daily Bearish:

Yesterday's price action was mainly bearish but without too much thrust and I feel there will be some consolidation - probably remaining above 1.0980-00 and below 1.1050. Once this is complete look for losses below 1.0980-00 that should actually turn quite aggressive and extend losses to 1.0900-22 and more likely 1.0857-82. That should be enough for today. Also note the 1.0830 area and the 1.0792 low.

MT Bearish:

18th August: I remain bearish in spite of the deeper correction and feel that either directly or from 1.1177-1.1235 we should see a cap for losses that should initially return to the 1.0792 low.

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.