WEEKLY CHART: The second of two bear channel base projections was recently tested - and so far it has provided good support.

But there is little in the current chart structure that suggests bear fatigue...

DAILY CHART:

With a temporary low established we have tentatively drawn in a couple of s/term retracement levels:

- note how 23.6% has provided s/term resistance, the market currently trying to break higher. Success would be a small positive sign.

Besides the intervening 1.3731 09-Jun low, note higher resistance around the 1.4000 area - former May lows and 61.8%. In fact, with the current 1.3070 low, this looks most key, as there are other, longer term, Fibo retracements (not shown) that fall close to this area too. A recovery through this latter would look bullish.

One point of technical interest - note that the 1.3070 low was an approximate 2.618 swing target off prior 1.3997/1.4587 May rally.

Philip Allwright

Mark Sturdy

Seven Days Ahead