Resistance is seen initially at yesterday’s high at 1.0698, ahead of a move back to the late March high and 38.2% retracement of the October/May fall at 1.0710/17, where we would expect to see fresh selling at first. We expect a break-in due course, though, and see resistance next at the 50% retracement and 200-day average at 1.0773/88, where we would then look for a more sustained cap to reassert the medium-term downtrend.
Support is seen initially at 1.0662/56, then 1.0632, ahead of 1.0589/76, which ideally holds to keep the near-term upside bias intact. Removal of here would negate the base and see a move back to 1.0510/00.
