The possibility of a short-term base forming and a reversal higher cannot be discounted. There may be a final exhaustive move lower to 1.3000 first but then I see signs of bottom forming and a rally back up to the trend-line for the move down at around 1.3130. After that the longer-term picture is still bearish with a 2-bar reversal on the weekly and a strong possibility of a move back down for a re-touch of the 1.26 lows.
Analysis by: Joaquin Monfort
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