The Daily Forecaster

[B]BIAS[/B]: There's a fine line between a blip higher & reversal and a direct resumption of the downside

[B]Resistance[/B]:... 0.9126-31... 0.9153........ 0.9173-78... 0.9200
[B]Support[/B]....:... 0.9119........ 0.9091-00... 0.9076........ 0.9040-50

[B]MAIN ANALYSIS[/B]: As with EURUSD the 0.9119 level appears pivotal between the scenario calling for a recycling back up to 0.9153-73 or direct resumption of losses. This should mean we can either wait for the upper resistance to cap and see losses, or we see direct losses below 0.9119 & 0.9091-00 to treat the recovery to 0.9148 as a deep pullback. If the latter is seen, and I'm tending to prefer this, then we should see the downside move back to 0.9050-76 and later through 0.9010 to the 0.8978-97 area. I suspect the higher 0.8997 projection as the pullback will be shallow and once complete will then move lower to the 0.8906 intermediate target.

[B]COUNTER ANALYSIS[/B]: Only a direct break above 0.9180 would allow a slightly deeper correction higher but note the 0.9200 pivot resistance and at most 0.9254-77.

For more information regarding the support & resistance and medium term outlook please see the attached PDF file.

Good trading
Ian Copsey

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