PLEASE NOTE THAT THE DAILY FORECASTER WILL BE BACK ON 10TH AUGUST

Price: 1.0854

Bias: While 1.0833-45 supports I feel we can reach the 1.0961-79 area at least - then work with breaks

Daily Bullish:

The 1.0855 support slipped a little but we finally reached the low end of the 1.0930-65 resistance. There is a steep bearish divergence in the hourly market so we should be cautious. There is support at 1.0833-45 and while this remains intact there may be room for gains back above 1.0905 and 1.0933 to the 1.0961-79 area. Take care here as this may well cause a reversal lower. Thus only a break above 1.0980 would extend gains to 1.1021 and possibly 1.1067.

MT Bullish:

30th July: I really can't argue a bearish stance any more but I need a bit more information to be firmer on the upside targets. While 1.0822-30 supports I feel we should reach 1.1037-67 at least. Take care above there with 1.1119 & 1.1166 implied.

Daily Bearish:

I am very aware of the hourly bearish divergence and the 1.0833-45 support. This is critical and if it breaks then expect a pullback lower through 1.0795 & 1.0752 to the 1.0730-35 pivot support. I feel this may well hold on first test. Thus only breach would extend losses down to 1.0622-53 at least. Also keep in mind the 1.0590 low.

MT Bearish:

31st July: I am rather concerned with this morning's strength in the Euro and any loss of 1.0833-45 would threaten to take price all the way down to the 1.0590-22 area again. If so it may well imply we'll see the Dollar's decline become much stronger. Next major support is at 1.0370.

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.