Daily Pivots: (S1) 0.8639; (P) 0.8663; (R1) 0.8709; More…
The strong rebound from 0.8604 and break of 0.8699 minor resistance suggests that pull back from 0.8786 is completed. Intraday bias is turned back to the upside for 0.8786 first. Break will extend the rise from 0.8402 and target 61.8% retracement of 0.9304 to 0.8303 at 0.8922. Overall, price actions from 0.8303 are forming a corrective pattern, as the second leg of the correction from 0.9304. We’d expect strong resistance above 0.8922 to limit upside and bring another fall.
In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. Deeper fall cannot be ruled out yet. But we’d expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside. Overall, the corrective pattern would take some time to complete before long term up trend resumes at a later stage. Break of 0.9304 will pave the way to 0.9799 (2008 high).
