Bias: Cautiously I look for gains today but we should be careful at 1.0968 and the 1.1021 high
Friday's losses developed and moved into the lower support range at 1.0761-94. This has seen a recovery which has extended this morning. There is still a little more to go to feel comfortable but while the 1.0795-1.0825 range continues to support I shall prefer a scenario that breaks above the 1.0873 high seen already this morning and onto 1.0890 and the 1.0932 corrective high. Although I feel this should move as far as 1.0968 minimum it would be wise to just be careful around 1.0932. Above 1.0970 extends gains back to the 1.1021 high but should hold if seen. Note next resistance at 1.1074.
25th June: Yesterday's recovery from the support area indicated was far more aggressive than expected but does open up the larger rally. Still, I feel we shall probably get better buying levels around 1.0826-60 which should then spur the next rally above 1.1265.
Cautiously I feel we have seen the lowest in this correction. However, there could still be a risk that we'll see a complex correction - and given the situation in EURUSD I feel this is likely. Thus, while the 1.0968-1.1021 area caps we could either see a triangle develop (from 1.0968) or possibly a flat sideways correction from 1.1021. At the most an irregular correction could see a rally as high as 1.1074. Thus, keep these resistance levels in mind when looking for selling opportunities. Only loss of 1.0761-94 would cause a deeper decline to 1.0723 at least. Then note support at 1.0675 and the 1.0631 low...
25th June: Great, the downside threat has been averted and now only back below 1.0760 would concern and suggest a retest of the 1.0590-1.0620 area.
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