The Brief Daily Forecaster

This pair has the knack of doing what is least expected when in a consolidation phase. Therefore, until the 1.0394 high is broken I would prefer to remain neutral. However, to retain a bullish outlook I do feel the 1.0330-43 area is important. While it holds there remains the risk that we could see direct follow-through above 1.0394 which would extend gains to the1.0441-61 area followed by a correction and final move to the 1.0494-02 resistance. Also note 1.0527 and the 1.0585 high.

If this actually breaks below 1.0330 it will raise the risk of follow-through lower again. However, I'd still prefer a break of the 1.0298 low that would provide the catalyst for a decline to the 1.0255 low and probably beyond to the 1.0200-20 area for a correction before the final move to the 1.0134-43 target.

Medium Term Outlook

29th July:

The erratic and whippy price development continues. Either we'll see a move down to the 1.0138 area before a recovery or the rally will resume directly above 1.0394 to 1.0470-90 initially but then to 1.0585-06 en route the 1.0851 high. Both are forms of triangle, the first symmetrical and the second ascending...

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Below 1.0130 would target the 0.9929 low... above 1.0851 is required to break the weekly consolidation.