Bias: Cautiously we should see a reversal higher today
Losses have developed in line with expectations albeit a lot more erratic than I would have liked. I can't even rule out that we've seen the low this morning at 91.94. A break above 92.20-27 should confirm a return to the 92.95-05 area. However, probably that's all we'll see today whether it comes directly or from the favored 91.56-74 support. Above 93.05 would then target the 93.43-80 area and above there is resistance at around 94.24-34.
2nd September: We should now find a good strategic buying area at 92.03 (max 91.70-74) which should generate a recovery back to around 94.38.
Although the 91.94 level could end up as the low I feel that we should see one more test lower. The 92.20-27 area should ideally hold for this. Indeed, it could turn into a complex sideways consolidation first but as long as the resistance holds the risk remains lower for one more dip to 91.70-74 (the ideal target) but we should allow for just a little more with the 91.56 level providing ultimate support. Thus, only below 91.55 would extend losses directly to the next support at 90.77.
2nd September: The decline is developing perfectly and should stall at 92.03 (max 91.70-74) and we should then look for a strategic selling opportunity around 94.38. Only directly below 91.70 extends to 90.77.
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.