[B]MAIN ANALYSIS[/B]: The drop below 1.5770 saw extension below 1.5747 to 1.5732. However, the manner of the decline suggests we have not yet seen the final low. In the meantime this really needs a deeper correction before it can extend back down to a more appropriate target. Thus today should see the correction higher extend above 1.5838 and to the 1.5860-90 area (allow for the 1.58910-30 congestion area) and from here the downside can resume back down to the 1.5732 low but I suspect stall in the 1.5708-17 area. (I suspect we shall have to wait for that low to later in the week.)
[B]COUNTER ANALYSIS[/B]: Only an earlier break above 1.5930 and more importantly the 1.5953 high would trigger gains towards 1.6017 and possibly 1.6050-65.
Only a break below 1.5700 would see losses resume directly towards 1.5635-47 and then the 1.5602 low.
For more information regarding the support & resistance and medium term analysis 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.