INTRADAY CHART
BIAS: Losses should continue today
Resistance: 1.2651 1.2680 1.2706 1.2725
Support: 1.2636 1.2600-08 1.2575-82 1.2540-50
MAIN ANALYSIS: Yesterday's early correction failed to even reach the 1.2757-84 resistance and stalled at 1.2739... I feel today could see the same pattern - a limited recovery to around 1.2651 - before losses resume below 1.2706. Still take care at the 1.2624 and 1.2605 lows but overall the decline needs to reach the 1.2575-82 area for a correction back to 1.2585-00 before extending the downside to 1.2520. This would then require a correction of around 50-75 points before lower. I expect the final low to come a bit later at 1.2415.
COUNTER ANALYSIS: Only a direct break back above 1.2670-80 would surprise. I'd still be a bit reluctant to follow it higher but note the 1.2706 high and the 1.2725-45 resistance. Further resistance is around 1.2764-84.
MEDIUM TERM ANALYSIS:
23rd October:
Still, as far as I can see, we are actually towards the final stages of a 5-wave decline from 1.3993 - currently en route the 1.2415 level that should provide a pretty deep correction.
Only directly back above 1.2739 and 1.2900 would require another review - but probably see gains to 1.2930 at least - possibly even 1.2996...