Bias: I look for a recovery to 93.62-93 followed by losses back to 91.79 and later to 90.49 (max 89.91)
The sharp drop below 93.13 saw follow-through to 91.79 from where a recovery is being seen. I feel this has a little way to go yet with the 93.20-30 needing to be watched but I feel the 93.62-93 area should cap. Also note resistance at 94.10. Any stronger bullish stance will need a break above 93.93-94.10 and only of seen will it mean we have see the low already and should then imply extension to 94.70-95.33 at least. Next resistance is at 96.17.
9th July: Both consolidation scenarios were totally wrong and it seems we are seeing the second corrective structure lower which I feel will come to an end between 89.91 and 90.49. From there look for a recovery. Only back above 94.10 would imply that recovery occurs directly.
Losses brushed through all supports to extend to the final support mentioned yesterday at 91.69-88. I look for the 93.62-93 area to cap and to generate a final leg lower. Thus look for bearish reversal patterns at 93.62-93. Only an earlier break below 92.34 would suggest this will occur more directly and then we can expect a decline to somewhere around the 91.79 low which should provoke a correction. Eventually, and likely to be tomorrow or at the latest Friday, we should see losses to 90.49 and at most 89.91.
9th July: The sudden rush lower really gave us little warning but while 93.62-94.10 caps the risk is still lower to 90.49 and at most 89.91 from where I expect a correction higher. Thus, only a breach of 89.91 would open up 89.19 and then we may have to think about 87.10 again€¦
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