I mentioned in yesterday Forex report that there were likely a number of large vulnerable stops that were likely sitting just above the 1.55700 level, these stops started get triggered in late NY traded before the market went quiet throughout Asia. London traders have now gone on with the move taking out a number of stops above the 1.55700 level.
The first target still remains the 50 Fib level at 1.58780, with an overall target of 1.6027.
Intraday players will be closely eying two major 1:1 support levels on the downside. The first 1:1 (Yellow) support level currently comes in at 1.56050, with the second 1:1 (Light blue), 50 Fib and old high coming in at 1.55250.
I will be looking to establish long positions once one of the above support levels indicates solid buying interest is likely.
* A 1:1 refers to a current correction being equal in length to a prior correction