Bias: There appears to be risk of follow-through to 83.24-56 but may see a pullback to 81.05-26 first…
Friday's rush higher caught me out completely and it seems as if we'll see additional gains. However, only directly above the 82.79 high will see immediate follow-through. Until then take care and if there is an earlier pullback then I feel the 81.05-26 will support. From here we should see gains back to the 82.48-80 area and later to the 83.24-56 target. Only a direct break above 82.48-80 would see more immediate follow through to target...
8th March: The strength seen is suggesting either a cap at the 82.79 high again or possibly to 83.24-56. Cautiously I see this holding for a reversal lower while AUDUSD also finds a high at 0.9135-69.
I'm not 100% comfortable with this rally but while 82.48 caps I feel there is risk of a pullback. This will be confirmed on a break back below 82.05 and 81.81 which I feel would then encourage a move through the 81.45-55 pivot support and at most to 81.05-26. As long as AUDUSD and USDJPY are performing to expectation I'd look for this to hold. Thus only below 81.00 would risk a direct resumption of losses.
8th March: Friday's gains appear to suggest we're either seeing a flat correction with a high at 82.79-81 again or a move complex correction that could extend to 83.24-56 and from there see a recycling of the correction back to 78.19.
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