EURUSD: Renewed Demand Expected; 1.2304 targeted

Yesterday's price action was dominated by a late selloff that reversed Tuesday’s entire gains and took EURUSD to a 4 day low.The downside has stalled overnight and some profit taking/fresh demand developing in Asia.

The resulting move higher is not extensive but does indicate that yesterday's late decline was a temporary one, especially with intraday signals for sentiment mildly positive. In view of this our call is Very Cautiously Bullish above 1.2195. Confirmation will be a move through 1.2268 with further upside then focusing on 1.2304, yesterday's open, then this week's 1.2343 high. 

The risk to this call is a move under 1.2195 indicating that the downside is likely to extend further than previously assessed, targeting 1.2159 and 1.2117, the open and low from July 26th.