his week's exceptional gains continue with a fourth straight daily
improvement. This move took the currency pair to a correction of 62
percent of the fall from the May 2010 peak, and the high levels traded
since October 2010. Intraday signals for sentiment remain at overbought
extremes with some profit taking developing to correct that situation.
This setback is expected to be temporary but our call is therefore
Cautiously Bearish below 1.0311. The immediate target is 1.0245 with a
move through that point focusing on the overnight low of 1.0224 or even
1.0183, half of yesterday's net gains, but probably no further.
The risk to this call is that the decline was more temporary and limited than currently assessed and this would be signalled by a move above 1.0311. Prices and sentiment should then improve to 1.0340 then yesterday's peak at 1.0363.
The risk to this call is that the decline was more temporary and limited than currently assessed and this would be signalled by a move above 1.0311. Prices and sentiment should then improve to 1.0340 then yesterday's peak at 1.0363.
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