BIAS: We should see a recovery back to the 1.6605-35 area before losses resume.
| Resistance: | 1.6605 | 1.6620-25 | 1.6634 | 1.6660 |
| Support: | 1.6551 | 1.6525 | 1.6500-10 | 1.6480-85 |
MAIN ANALYSIS: Losses were a little deeper than expected although close to valid retracement support levels. However, both 4-hour and hourly momentum remain bearish and suggest that we still need a new low that could be as deep as the 1.6510-28 area. However, first thing we should see a recovery back to the 1.6620-25 area - and allow for 1.6634-40. From this correction we should then see losses down below 1.6551 and to the 1.6510-25 area. Observe for an hourly bullish divergence at the very least - 4-hour also preferable that would support the argument for a reversal higher.
COUNTER ANALYSIS: Only directly below 1.6495 would risk a retest of 1.6465, and if this breaks then we could be back on a bearish outlook.
MEDIUM TERM ANALYSIS:
Any earlier break above 1.6663 could still risk 1.6683-1.6717 but then the deeper correction.