Bias: Cautiously I feel the 1.0580-85 area will support for a break above 1.0629-32 and to 1.0667-86 before lower
The 1.0629-32 resistance marks the break for an extension of the recovery. I would prefer a correction first to the 1.0580-85 support before the break higher and if seen I feel this would be a good buying area. However, if the 1.0632 high breaks directly then expect follow-through to 1.0648 and probably 1.0667-86. However, I will be looking for this resistance to hold for a reversal lower. Thus, only above 1.0590 would maintain the upside momentum for 1.0725 and 1.0757-73 - possibly en route the 1.0832 high.
24th August: Having reached the 1.0542-73 support and also noting the support at 1.0486-89 there should be a period of upward correction. Only back above 1.0683-1.0725 would suggest any stronger rally above 1.0882 and 1.0954 to the 1.1021-67 area.
While overall I still feel we are in a larger bearish move I feel we shall be given a better selling opportunity with a break above 1.0632 signaling a move through to 1.0667-86. Look for a reversal pattern in this area. From here - or a direct break below 1.0580 - I will look for losses in the next leg below 1.0554 and to 1.0489 at least. Take care here. Below 1.0480 implies 1.0370-90 before higher.
24th August: We have seen the anticipated losses and at most I feel the 1.0489-1.0542 support range will provide support. For the moment this should hold below around 1.0632. Only directly below 1.0486 would extends losses to 1.0370-90.
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