BIAS: We should see a pretty deep correction higher
MAIN ANALYSIS: We saw the correction back to the 1.5505-25 area - where it capped and saw losses as expected…but much deeper than I had anticipated… reaching 1.5369. This means we have to correct the decline from 1.5719 to yesterday's 1.5369 low. We now have a balance of the correction and just how strong the next decline will be. However, at a bare minimum will be a 50% retracement and that's at 1.5544-58 but which would need a strong Wave [iii] projection. The deeper 1.5602-36 area would make me more comfortable but could conflict with EUR and CHF. Hence the suggestion that we may see complex corrections in EUR and CHF while price here can correct lower - and then rally again. So, that's a broad outline to the possible scenarios.
COUNTER ANALYSIS: For now we should see gains and to the 1.5540- 60 area. En route, not the 1.5475-1.5508 area that should initially provide a barrier...
MEDIUM TERM ANALYSIS:
27th August: As suspected, the recovery from 1.5329 was corrective and yesterday's sharp losses have confirmed the downside. I would prefer to wait for a little more development to judge the intermediate targets but this should be quite low…