“As the key levels remain well-defined, we continue to monitor the 1.1468/1.1534 resistance zone for signs of an extended upside retracement”.
“Note that this area represents the May and February highs and has taken on added importance given the potential short term basing pattern above the March low”.
“In turn, upside breaks would target the 1.1750/1.1810 area which includes the 38.2% retracement of the decline from the May ’14 peak and the 200-day moving average”.
“With expectations that this zone should be a max for any additional retracement, note that a break above this area is necessary to confirm the onset of a deeper corrective phase”.
“Until then, the current consolidation phase is viewed as a short term retracement before the medium term downtrend resumes”.
“Given this framework, we continue to see potential for new lows into the 1.0070/75 area (76.4% retracement of the 2000-08 rally), if not the .9652/.9298 projections”.
“Shorter term, breaks of support at the 1.0815 late-May low will help define a closer test of the 1.0462 March low”.
.....same our view...... :)