[B]MAIN ANALYSIS[/B]: Indeed we saw losses but only within range and I suspect this may continue today. The important initial boundaries are at 1.6186 on the upside that should be hit first and 1.6137 on the downside that should follow the push higher. Thus, breaks outside of these boundaries would risk stronger follow-through. A break higher still sees close resistance at 1.6198-15 and in turn this must break to provide any stronger push higher through 1.6238-47 and towards the 1.6301 high. Above here should signal stronger gains.
[B]COUNTER ANALYSIS[/B]: Any earlier break below 1.6137 would risk losses down to the 1.6114 low and probably then to the 1.6060-76 area (max 1.6040-45.) These are important support areas and any break will raise the risk of more direct losses. Below note 1.5979 (which should cause a correction at least) and then 1.5932…
For more information regarding the support & resistance and medium term analysis please see the attached PDF file.
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