Bias: While 85.22-24 caps I feel there is still downside risk for 83.65-95
Losses were strong and have reached down to the 84.40-60 support. There still seems risk of a little more to go. We could see a recycling of the correction back to the 85.22-24 area but while this caps look for losses to press below the 84.56 low to reach 83.95 minimum and potentially 83.65... If see then look for bullish trade set ups. Only an earlier break above the 85.25 area would extend gains more directly through 85.46 and to the 85.95-00 pivot resistance.
19th April: While 83.65-95 supports I remain bullish for a return to the 87.50 high and then beyond to 88.28 and possibly 88.78.
If we see a second pullback to the 85.22-25 area look for bearish trade set ups. From here I will be looking for losses to extend just a little more to extend into the 83.65-95 area. Cautiously I feel this will hold for a resumption of the uptrend. Thus, only below 83.60 would cause concern and suggest follow-through to 83.27 and 82.85 at least. Also note support at 82.04.
19th March: The correction was much larger than anticipated and we should now therefore watch the 83.65-95 area to see whether this can hold.
For a full description of how to use the analysis please see the Analysis page of my website. The prior day's set ups for potential trading levels highlighted in the report are available on the Daily Forecast page of my web site in the Trader Package review. (+185 pips)