Bias: I feel we're more likely to see a dip to the 0.9972-78 area before a recovery
The losses have brought the risk that we're going to see a larger sideways consolidation. This would imply a move down to the 0.9972-78 area. If seen look for a bullish trade set up… From here - or a direct break above 1.0080 look for gains to develop which I eventually expect to reach back to the 1.0140-60 area. Only a direct rally back above 1.0080 would see stronger gains back to 1.0160 and the 1.0196-14 area...
30th April: The decline seems to open up risk of further consolidation that should remain below the 1.0160 area… Only above the 1.0196 high would trigger stronger follow-through.
With yesterday's decline I feel the 1.0071-78 area should now cap to extend losses to the 0.9972-78 area. I feel this should stall the decline and reverse back into the larger range. Thus only break of this support would extend losses to the 0.9929 low. Beyond there we will need to revert to the original targets.
30th April: Only below 0.9970 will suggest we will revert to the original targets at 0.9890 and potentially 0.9830.
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 available on the Daily Forecast page of my web site in the Trader Package review. (+90 pips)