Bias: The 0.6288 support was broken only by 4 pips and the move higher should develop to 0.6419-50
Yesterday was a bit flat but this morning saw the dip to the 0.6288 support and just 4 pips below… Thus today we should see the correction higher I had anticipated yesterday. There is minor resistance at 0.6337 but I feel this will soon break for gains to extend through 0.6355-59 and 0.6382 en route the eventual target at 0.6419 minimum and 0.6450 maximum. I suspect the lower level should cap but do be aware of the 0.6450 resistance also. Thus only a break above 0.6455 would imply gains to 0.6490 & 0.6553.
3rd March: Losses have developed much as expected and should continue from the 0.6419-50 area. Thus a stronger bullish stance is going to require a break above 0.64660 and only then would it imply gains to the 0.6553 high.
The low at 0.6284 does tend to suggest a deeper pullback so we'll have to be patient for the next leg lower. If we see a move into the 0.6419-50 area look for a topping pattern for the next leg lower. Only an earlier break below this morning's 0.6284 low would imply the next leg is resuming directly and then we'll be looking out for losses to the 0.6247 low at least. Take care at this low as there could be a reaction. Overall, however, I feel that we should then get direct follow-through for 0.6155-84.
2nd March: Losses are developing as expected. Overall I feel that we'll see a drop to the 0.6155 area at least and at most 0.6073. While this is possible the 0.6424 resistance should cap.
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.