BIAS: Take care between 1.3373-1.3400…
MAIN ANALYSIS: Already we have a solid 4-hour bullish divergence along with daily. Price has reached the higher 1.3422 target but a bullish divergence is not present as yet. Thus, from this point we need take care. The next (favoured) target is at 1.3397-00. There is a third at 1.3373. Thus, much depends on how this last leg lower develops and with hourly momentum pointing lower it would be helpful if the first part of the day saw some sideways drifting/consolidation before heading down to the 1.3400 area. Still allow for 1.3373.
COUNTER ANALYSIS: A direct break below 1.3370 will risk losses to the 1.3325-50 area - but not below 1.3295.
MEDIUM TERM ANALYSIS:
25th July: Yesterday's direct losses now suggest targets between 1.3422-32 minimum and note the 1.3398 and 1.3373 projection targets. We must see an hourly bullish divergence to join the daily and 4-hour. With this low in place we should see a modest correction higher - though the depth is going to be difficult to judge.
A direct break below 1.3370 will risk losses to the 1.3325-50 area - but not below 1.3295.