An erratic Wednesday pre- and post-FOMC to reinforce the consolidation tone so far this week, still capped by strong resistance at .7819/40, but the probe below .7674 support, leaves a downside bias for Thursday.
Furthermore, the push down towards .7595 last week negated the previous recovery effort and maintains June bear pressures.
- We see a downside bias for .7700 and .7641/33.
- But above .7793 opens risk up to .7819/40, which we would look to try to cap.
Short/ Intermediate-term Outlook – Downside Risks:
- We see a negative tone with the bearish threat through .7595 to .7533.
- Below here targets .7500, .7269 and .7094.
What Changes This? Above .7840 eases bear risks; through .7932 signals a neutral tone, only shifting positive above .8164.