Bias: Cautiously I look for a retracement back into the 1.1400-50 area from where losses can develop
Yesterday's pullback was non-existent and losses were as aggressive as the previous day. We either have to side with yet another day of aggressive losses or a deeper pullback. I'd like to think that we should see a little stronger after the last couple of days. First resistance is at the 1.1212 corrective high and this may well hold on first test. However, once broken it should trigger a stronger recovery back to the 1.1285-1.1321 area which I feel would cap for another round of losses. Take care however, if this rally is seen it could be very choppy.
16th July: Yesterday's losses put an end to any quick reversal and only back above 1.1320 would provide potential to 1.1366, maybe even 1.1418.
After yesterday's experience I am rather cautious in calling for a larger pullback but if seen then I feel the 1.1285-1.1321 area is where we should be looking for bearish reversal patterns. Only an earlier break back below 1.1150 would retest the 1.1113 low and if seen directly may also see 1.1080 at least with support also seen at 1.1039. Overall if direct losses are seen then the next major support appears to be at 1.0940.
16th July: While 1.1285-1.1321 caps I feel the minimum target is at 1.0940 and we may well see a move to the 1.0783 low.
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