Price:   1.0341

Bias:  Mixed - waiting for breaks but remember we are in the final stages of a weekly cycle low

Daily Bullish:

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.

MT Bullish:

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.

Daily Bearish: 

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.

MT Bearish:

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.

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.