Commentary: There is still the potential for a drop to the channel support line, drawn off of the 4/19 and 6/8 lows, near 122.00. The longer term bull trend is bullish above 120.76. “Coming under 120.76 (as well as channel support near 122.00) would indicate additional bearish potential.”
The decline from 124.13-122.79 is nearly equal to the 123.51-122.23 decline (6 pips difference). This means that an a-b-c decline could be complete at 122.23. We are publishing a 5 minute chart this morning to show the potential bullish structure that is forming from 122.23. An a-b-c correction may end at the 61.8% of 122.23-123.36 at 122.66. Strategy: Look for bullish opportunity close to 122.66 Fibo support, 120.76, targeting above 125.00