[B]Bias: [/B] Cautiously I feel there is still further upside to go as long as 0.9900-10 supports else the downside resumes
Yesterday turned out to be more bullish than expected, extending the larger recovery to a new high. We are in the middle of key daily retracement targets and therefore we still need to be cautious about any gains though I feel the structure still needs this. There is support at 0.9900-10 that should support and generate a push back higher and we'll have to see how far this can reach. Ideally I'd like to see this move back to yesterday's 0.9970 high and to the 1.0000 area. This should cause a further correction. While it remains above 0.9950-55 I cannot rule out a move as high as 1.0030-40 but we should be looking for possible bearish trade set ups here.
If the 0.9900 support breaks then we may have seen the high already if seen then expect an initial drop down to the 0.9835-50 area where there is a rising channel low. We'll have to see how deep any pullback can reach at this point though I doubt it would get above the 0.9900-10 (then) pivot resistance before it reverses down through the channel. The 0.9800-10 area also provides support to add to possible choppiness - this needs to break to clear the way for stronger losses.
Please view the complete analysis in the attached PDF file.
For a full description of how to use the analysis please see the Analysis page of my website. The prior day's set ups for potential trading levels highlighted in the report are available on the Daily Forecast page of my web site in the Trader Package review. (+0 pips)
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.