Bias: Mixed - waiting for breaks as there is potential for a sideways consolidation
Yesterday's losses ended quickly and forced a pullback higher that looked strong enough to push to new highs. However, it has backed off from the 0.9174 area and before we can be certain of follow-through higher the 0.9174-89 peaks must be taken out. While a bullish stance is still valid the 0.9118-28 area must support. Thus, only if seen look for follow-through higher that would then extend above 0.9208 and probably to the 0.9242 area. Expect a correction here. After the correction is complete the 0.9295-0.9321 area is the target.
14th December: The 0.9187-89 area proved too much and only a reversal back above here would provide a stronger push higher.
No break above 0.9189 on the sharp pullback from yesterday's 0.9053 low. The key support area today is at 0.9118-28. If this breaks then we're likely to see losses that should extend down to 0.9053-83 but until yesterday's low is broken there is risk of a pullback higher within a sideways consolidation. Thus, any stronger bearish view will require loss of 0.9053 and only if seen would it resurrect a retest of the 0.9014-25 lows and probably follow-through to 0.8984 and the 0.8946-54 area. I feel this stands a good chance of holding if seen. However, note the next support at 0.8904.
14th December: This does look a lot more bearish now and I feel the 0.8946-54 area will provide temporary support only and the same at 0.8904-19. The larger targets are at 0.8816 and 0.8752.
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 along with a new report showing the prior day’s support & resistance levels.