Bias: I feel the upside is limited by 0.8225 and should see losses from there
Gains have been seen and this encourages with the tentative thought that we may have seen a major low. However, we seem to be quite close to the completion of this first rally. The 0.8751-70 area should continue to support and generate follow-through above the 0.8796 high and to the 0.8825 target. Take care from that point as I feel we shall be due a reversal lower. Only above 0.8825 would extend gains to 0.8853, 0.8894 and to the 0.8913-23 area.
10th February: First rally has been seen but we should now see a pullback from the 0.8825 resistance. Then we need see how the downside performs. Thus, at this point, only a break above 0.8825-30 would extend the upside more directly to the 0.8913-23 corrective highs.
Price has rallied to 0.8796 thus far and we still appear to have one more leg higher to go but I look for the 0.8825 resistance to cap and cause a reversal lower. Thus, watch for a bearish trade set up at this point. I look for this decline to approach the 0.8700 area again.
10th February: Only back below 0.8700 and 0.8629-61 would begin to threaten a break back below the 0.8578 low.
For access to my daily support & resistance levels please see the Daily Forecast page of my web site
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.