After spending most of the day in a tight range of 1.2520/60 and respecting its mvg avg support, Euro rose strongly later in the day.It should carry into the 1.2675/1.2720 range today with any interim drop not exceeding 1.2620.In the first instance I expect the current rise to complete an irregular consolidation that will leave Euro vulnerable to a new decline.An inability to hold above 1.2675 will be a preliminary sign of weakness but only a drop through 1.2560 will swing the odds in favour of a decline.A rise through 1.2720 will delay the decline until 1.2810 is tested.Only a break of the higher level suggests the decline is over.
Sterling’s drop to a new low of 1.8092 then sharp rise to 1.8295 suggests that a significant low is in place – the entire corrective decline from 1.9025 is probably at an end.The current rise should drift into 1.8310/30 today and then pullback to 1.8200.
Dollar/Swiss dropped into its retracement target with a low at 1.2355 yesterday.But Dollar/Swiss has respected mvg avg and channel resistance around 1.2530 so it is vulnerable to a new decline.A drop through 1.2310 will confirm it.
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