[B]BIAS[/B]: While 1.3164-85 caps we should see a move down to 1.3024-55 at least
[B]MAIN ANALYSIS[/B]: Yesterday was pretty much a sideways day although marking a minor new low and then reversal higher. I still see this as part of the overall decline and this still points to the 1.3164-85 area as providing the important resistance. Ideally price should remain below here (and definitely below the 1.3241 corrective high) to retain the probability of seeing a final dip down below 1.3096 and to 1.3078 minimum. My favored target remains in the 1.3024-50 area - but allow for the 1.2974-92 area also.
[B]COUNTER ANALYSIS[/B]: Only a direct break above the 1.3180-85 pivot resistance would concern and perhaps suggest the recovery will develop more directly though final confirmation will only come on a break above the 1.3241 high. Once that is taken out we can expect to see 1.3280-85 and 1.3300-05 at least.
Only below 1.2974 would deeper the move lower with 1.2953 and 1.2911 also providing potential support.
For more information regarding the support & resistance and medium term outlook please see the attached PDF file.
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. Forex Capital Markets LLC. will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.