INTRADAY CHART
BIAS: We should see the rest of the correction to 138.70-90 (max 138.50) before extending gains
Resistance: 140.11 140.35-40 140.70-75 141.22
Support: 139.67 139.10-15 138.70-90 138.50
MAIN ANALYSIS: The rally reached the top of the target range between 140.85-141.28 from where we have seen the expected correction lower. So far we have seen the 139.67 level reached. We should see the 140.35-40 area cap for losses below 139.67 to extend to 139.10-15 and then 138.70-90. (allow for 138.50.) Watch for bullish reversal indications from there. However, from this point onwards we may just see a longer period of consolidation. Therefore focus more on the extremes and note the analysis in both EUR/USD and USD/JPY...
COUNTER ANALYSIS: Only an earlier break below 138.50 would risk more direct losses to 138.00-25 initially and then below 137.70
Back above 140.50 could see a more complicated consolidation. Take care at 140.70-75 but possibly we could see the 141.22 high again. Only above would risk extension to 141.64.
MEDIUM TERM ANALYSIS:
22nd September: The correction we're seeing versus the related earlier correction tends to implicate a period of range trading. At this point, the 138.50-90 area should support while the 141.22 area could hold - though there is a slight chance of a minor new high and recycling. Thus, this period does suggest some choppy trading for a period before any further solid gains can be seen.