The Daily Forecaster: EURUSD
Price: 1.2803
Bias: I expect to see 1.2830-42 cap for losses to 1.2738-51 but then a pullback before further losses can be seen
The underlying MT direction is bearish while the daily bias is neutral. This may indicate price consolidation or an unclear wave structure that needs confirmation. Note key MT support & resistance levels that may break the MT trend or would suggest a resumption of the move lower. It is very important that you consider either bullish or bearish set up patterns in indicators or lower time frame charts to support S&R breaks
Consider buy set ups at: 1.2738-51 or 1.2920
Consider sell set ups at: 1.2830-42 (if direct) or 1.2870-92
| Resistance |
1.2830-42 |
1.2870 |
1.2892-17 |
1.2936 |
1.2962-82 |
1.3048 |
| Support |
1.2792 |
1.2776 |
1.2738-51 |
1.2696-12 |
1.2664 |
1.2625 |
Daily Outlook
The ideal 1.2907 target was broken but not the 1.2921 corrective high and this morning has seen losses develop. I see the 1.2792-97 area supporting for a correction to the 1.2830-42 area from where we should see losses to the 1.2738-51 area. However, I suspect this will cause a pullback which should move back to the 1.2870 pivot resistance (max the 1.2892 corrective
high) and from here we should see a second decline which should reach a new low... Only direct loss of 1.2725-35 would imply a more direct decline...
Only a move back above 1.2892- & 1.2921 would deepen the correction to 1.2936 and 1.2962-82. Only above there would threaten a stronger move higher.
Medium Term Outlook
2nd September:
I still remain more bullish in the near term to the 1.2907 resistance but once this correction is complete the main direction remains lower for 1.2451-85 minimum and potentially closer to the 1.2150 corrective low. Just be aware of the small risk that this tops out closer to 1.2960...
Only above the 1.2960 area would resurrect potential for deeper gains though I still doubt this would imply new highs
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