Bias: Ideally we'll see direct losses but there is a slight risk of seeing 0.6612-36 first
The day started out bearish but the failure to break below 0.6398 provided the foundation for price to rally back above 0.6525 to reach 0.6575. There is support at 0.6498-11 and while this holds there is still risk of another attempt higher which would break above yesterday's high to reach 0.6612 at least and at most 0.6636. If the hourly bearish divergence is intact then it should cap for a stronger decline. Above 0.6640 extend gains to 0.6671 minimum and possibly 0.6715.
13th March: Price broke above 0.6525 and this would appear to provide the basis for extension to 0.6636. However, take care there. Only breach would extend the rally to between 0.6671 & 0.6715.
Everything looked good until the 0.6398 low failed to give way€¦ If the 0.6498-11 area supports we could still see higher levels around 0.6612-36. Check bearish set ups there as this could provide a cap. If we actually see a direct breach of 0.6498 then it should imply that the high has been seen. If so then look for losses to extend through 0.6460 and to the 0.6410-20 area. This will probably provide a correction so only look for direct extension if the 0.6398 low breaks. If seen then we should see direct extension below 0.6304.
12th March: There does seem to be a growing risk of a stronger push lower and the successive breaks of 0.6460, 0.6398 and 0.6284 would trigger an eventual move to retest the 0.6006 low.
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 now available on the Daily Forecast page of my web site.