INTRADAY CHART
BIAS: Take care - the 1.1299 low must hold to reach above 114.39 else any breach would trigger losses
MAIN ANALYSIS: The start of the day was perfect - a move up to 113.62 first, followed by a minor correction and then to the top of the 114.00-19 projection target area. This is where things broke down somewhat with a much deeper drop to 112.99. This was a 57% retracement so is valid but there's quite a gap higher to reach above 114.39.... It will require both EURUSD and USDJPY to move higher to be able to reach 114.39. If it happens then watch for bearish reversal indications between 114.39-73.
COUNTER ANALYSIS: Any direct break below 112.99 would turn this into a possible irregular triangle down to 112.41-63 for a pullback - difficult to judge but I'd say between 113.05-55 - for losses to resume and down to 111.62. Here we'll need a pullback of above 100 points.
Good trading
Ian Copsey
BIAS: Take care - the 1.1299 low must hold to reach above 114.39 else any breach would trigger losses
Resistance: | 113.60-70 | 114.04-18 | 114.39 | 114.50-73 |
Support: | 112.99 | 112.41-63 | 112.07-24 | 111.62 |
MAIN ANALYSIS: The start of the day was perfect - a move up to 113.62 first, followed by a minor correction and then to the top of the 114.00-19 projection target area. This is where things broke down somewhat with a much deeper drop to 112.99. This was a 57% retracement so is valid but there's quite a gap higher to reach above 114.39.... It will require both EURUSD and USDJPY to move higher to be able to reach 114.39. If it happens then watch for bearish reversal indications between 114.39-73.
COUNTER ANALYSIS: Any direct break below 112.99 would turn this into a possible irregular triangle down to 112.41-63 for a pullback - difficult to judge but I'd say between 113.05-55 - for losses to resume and down to 111.62. Here we'll need a pullback of above 100 points.
Good trading
Ian Copsey