Bias: Mixed - waiting for breaks but remember we are in the final stages of a weekly cycle low
Well, we almost reached the 1.0422 high again but then saw the reversal lower which I had also been looking for. It does look like the first leg of three lower and I see potential for extension to the 1.0295-05 area. However, take care here as I feel there should be a correction higher. However, I can't see this being too deep and will probably end around the 1.0346-66 area. Thus, any stronger bullish stance will require a break above 1.0366 and if see it would produce a third attempt around the 1.0422-42 area but should cap. Only above 1.0450 triggers a much larger reversal.
15th September: Any push higher now should be the last in this correction and stall at 1.0422-56 (max 1.0460-88.) Only a break above here would negate the expected decline to 1.0040-72 where I feel a long term base will be seen.
Losses began from the 1.0417 high and have reached 1.0328 thus far and while 1.0360-66 caps I feel we should see a dip to around 1.0295-05. However, I feel this may well hold on first test. Therefore, only directly or after a pullback to the 1.0346-66 area would I expect a stronger follow-though lower. First support is at 1.0248 and while I feel this should break quite easily do observe this carefully. Below 1.0245 maintains the bearish momentum for 1.0139.
16th September: The 1.0320-40 area supported for the expected correction and now this is a complete the final move lower should develop. Match this with the targets in EURUSD, but I see the larger risk at 1.0139 and then 1.0040-72. Observe these areas for a bullish reversal pattern.
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