Bias: While 1.0160-70 caps I still look for the final decline to the 1.0040 target (max 1.0010)
We're almost at the final target but it still shouldn't be a direct move. The 1.0092-00 area should support (another support at 1.0082) and this should trigger a correction. Just how far this correction can move is uncertain but broadly the 1.0138-70 area should contain this. The subsequent decline should reach the 1.0040-45 target with now only a small risk of seeing 1.0010. Thus look for a bullish reversal pattern in the 1.0010-40 area that is accompanied by bullish divergences in hourly and 4-hour charts. From there the first move should be back to the early pullback between 1.0138-70 and once that breaks (or if it does so directly) then 1.0350-58 is the target.
I don't think we're going to get direct losses and should find the 1.0092-00 (max 1.0082) support should spark a correction. Look to sell into this between the 1.0138-70 area. From there I shall be looking for the decline to the 1.0010-40 area - and the ideal implied target is 1.0040-45. As long as this comes with bullish divergences then that should be it for a few months. Thus, only a break below 1.0010 would extend the losses to 0.9953-79. Note the next support at 0.9880.
15th October: The 1.0066 intermediate target should be reached today but then see a correction that should remain below 1.0140-75. While the daily targets still remain at 1.0010-40 the shorter term wave structure is beginning to suggest a deeper target at 0.9953-79…
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