Bias: Mixed – waiting for breaks
We did get a break above the 1.0700-28 area but the upside stalled just below the 1.0786-97 resistance. The short term structure is mixed - could even be seeing a sideways consolidation which would imply a cap around the 1.0742-52 area. Thus wait for break of this resistance and 1.0767 to confirm stronger follow-through to 1.0791-1.0821 at least. However, take care here as this could stall the rally for another correction. Then note higher resistance at 1.0908-25. Only if there is an aggressive move would I then consider the 1.0975 area.
17th September: Losses have not broken below 1.0600 and even if they do we may just find the 1.0517-44 area holding. An earlier break above 1.0728-61 would appear to suggest direct gains back to 1.0900-25 and 1.1100-25.
Gains were seen but not yet that convincing and thus we need to be alert to any downside risk. The 1.0663 low does look to be the obvious break point but beware of the 1.0638 support also. A move below these supports would suggest that we are taking another look down at the 1.0590 low with a minimum target at 1.0559-74 and possibly 1.0542. Also note the 1.0498 support.
21st September: The downside looks less likely now and only a break below 1.0636-63 and then 1.0590 would threaten follow-through to 1.0498 at least. Breach opens up the next support at 1.0382...
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