DAILY CHART:

In the FX Specialist Guide we have been looking at the bull channel base projection which helps to gauge market momentum.

It has begun to fail as support, putting bulls on a cautious footing.

After a s/term bounce (resisted around the 50% rebound level, not shown) the slightly lower 38.2% pullback has come under scrutiny again - this is viewed as the key level, with break below to herald a deeper correction phase.

This then initially open up the 1.5294/65 area, 07-Sep low and 50% pullback, where next s/term support seems likely.

Overhead resistance is offered by the early Aug high around 1.6000, ahead of the 1.6094 19-Nov high.