Written by Jamie Saettele, Technical Currency Strategist
A complex correction (W-X-Y) is unfolding since the 1/22 low at 1.9337. Support is clearly strong above 1.9350, which led to a triple bottom. The final leg of the correction is underway now and should lead to a thrust above 2.04 by mid-July. Near term, the pair is sitting at a resistance line but a break through would shift focus to 2.00.
Very short term, the rally from 1.9362 could be a series of 1st and 2nd waves. Support is strong at today’s low (former resistance from multiple daily highs served as support). Risk is tight at 1.9612 and upside potential is 4 x risk.
