[B]MAIN ANALYSIS[/B]: The rally continued and to just above the 1.5962-80 area and probably hasn't quite completed this leg higher. While 1.5940-50 supports I can see progress to 1.5991-00 but then a pullback that should retrace back to the same sort of support at 1.5940-50 (the higher level most likely) for another push through 1.60 to 1.6042-62. This is where a deeper correction should occur (aligned to the 1.3280-00 cap in EURUSD most probably.) This correction could decline as deep as the 1.5900-20 area.
[B]COUNTER ANALYSIS[/B]: An earlier break below 1.5940 would concern… There is still pivot support at 1.5880 and as long as this can hold the upside still looks reasonably straight-forward. A break below 1.5880 would risk a sharper drop and back to the 1.5804-08 lows and below to the 1.5745-55 area before higher.
For more information regarding the support & resistance and medium term outlook please see the attached PDF file.
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