Best Financial Markets Analysis Article The correction from the 1.3063 Mar high has been deep. Whilst recent support has not come from the most obvious of levels it is still worth looking to see what is now needed to trigger further s/term bull interest.

The FX Trader’s view

WEEKLY CHART:

The downmove has so far stopped short of the 76.4% level at 1.0000 (however, there is no requirement that this be reached).

Ahead of here support has come from near the 1.0296 Sep-08 low, the take-off point for the last major upleg – it was briefly eroded but a rebound has been prompted.

DAILY CHART:

The initial recovery found clear
resistance from the 1.0880 23.6% retracement. It remains the first key resistance, and a close above this would provide a bullish signal.

Our focus would then turn to the area of the 1.1124 17-Aug high which currently coincides with a bear channel top projection.

Whilst temporary resistance may well be seen here we would expect the recovery to push higher.

We are currently leaning towards the idea that the recent pullback was temporary/corrective, ahead of a further upleg.

Mark Sturdy
Philip Allwright

Seven Days Ahead
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Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

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