The bullish key day reversal at the channel support of 1.2460 together with the inability to hold below the previous low provides Euro with an opportunity to rally again.More likely, Euro will spend several days ranging before resuming the decline.The first leg of the consolidation is ending now so Euro should drop back to 1.2500 over the next day or two.A secondary rise should then take Euro into the 1.2625/50 zone to complete the consolidation.Only a rise through 1.2735 will confirm that Euro is rallying again.
Sterling rose strongly again yesterday to signal that a broader upward retracement is in progress – to 1.8625.Expect a pullback to 1.8360 today before the rise continues.
Dollar/Swiss made a minor top at 1.2595 yesterday.After a reaction back to 1.2520/50 another drop should take Dollar/Swiss back to the 1.2370/1.2400 region.
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