Bias: I feel the correction is complete - or close to completion so expect further gains to develop
Price fell short of target and the correction developed sooner. However, I feel we may have even seen the corrective low at 1.0825 though we should allow for 1.0786-97. Overall I feel we shall see a recovery from this support area or it may just come directly and this will be confirmed on a break above the 1.0865 high we have seen thus far. If seen then look for follow-through for 1.0965-74 and eventually back to the 1.0990 high. Take care in case this becomes a strong move as I feel the next target is at 1.1122.
29th September: While 1.0786-1.0825 supports I still feel the next larger target is at 1.1122.
While I am bullish we should be aware of the bearish divergences in both hourly and 4-hour charts. There is support at the 1.0825 low seen yesterday and if price fails to move above the 1.0890 area then any break below 1.0825 would look bearish. We will need to take care at 1.0796-87 but a direct loss would raise the chance that we'll see this lower support give way and allow losses to reach the 1.0723-45 support at least. However, if this is seen it would tend to suggest that the upside has failed and then we're more likely to see extension lower towards 1.0660-84 at least. Below there are the 1.0630 & 1.0590 lows.
25th September: With the expected gains seen yesterday we can raise the reversal level to 1.0770 - only breach opens up 1.0706, 1.0630-60 and possibly below.
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.