Bias: While 1.0244-66 supports I feel we shall move higher to 1.0346-88 before reversing lower
This has been a lot more choppy than I had expected but does seem on track to reach the 1.0349-88 area. I would prefer that we get an earlier pullback and while the 1.0323 high holds we can still see a move back into the 1.0244-66 support area. From there - or a direct break above 1.0323 we should then see extension to 1.0349 at least. Take care there. A more direct break higher could reach teh higher target. However, as soon as it breaks above 1.0349 look out for bearish reversal patterns. Only above 1.0388 would suggest a higher test at 1.0417 - max 1.0450-72.
24th September: Having confirmed the 1.0184 low I feel the first leg higher will stall around 1.0332-51 and after a correction the second rally should reach the 1.0417 peak at least and possibly as far as 1.0450-72. That should be enough.
We are approaching what I feel should be resistance that should cap and cause another round of losses. Thus watch out carefully anywhere above 1.0349 for a bearish reversal pattern. Ideally the first move today should be lower to the 1.0244-66 support. From there I'd look for the push higher to the 1.0349 resistance minimum and maximum 1.0388. Below 1.0240 would risk direct reversal and move down to 1.0184 again and potentially 1.0139 and below.
24th September: Well, it seems as if 1.0184 provided the low and there seems only a small risk of seeing 1.0139 at this point. Overall I feel we are likely to see a large flat correction between 1.0184 and 1.0450-70… Only below 1.0139 would trigger a test of the 1.0040 daily target.
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