[B]BIAS[/B]: While 1.3119-37 caps we should see losses to 1.2920-53 before reversing higher
[B]MAIN ANALYSIS[/B]: Yesterday saw the expected recovery and to the right sort of resistance area. It could still see one more rally into the 1.3119-37 area and if so it should provide a cap for losses to develop. From there or a direct break below 1.3060 we should see the next decline develop. Below 1.3060 still sees a big congestion area that could cause a correction so only below 1.3030 would open up the downside for the 1.3003 low and this area (just above or below) should provide a correction ahead of losses down to the 1.2974 low and I feel the stronger target is in the 1.2918-53 area. It is here where I see the risk of a reversal higher developing.
[B]COUNTER ANALYSIS[/B]: Only an earlier break above 1.3140 would suggest we saw the final low at 1.3003. If broken then the next barrier will be the last swing high at 1.3191 that should cause a temporary correction. A break above 1.3191 would extend gains through 1.3245 to the 1.3265-90 area and once that breaks we should see the upside continue.
For more information concerning the support & resistance and medium term outlook please see the attached PDF file.
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