Bias: I am bearish and look for losses with the only risk being a break above 0.9115 to reach 0.9169 before lower
This is a bit complicated as there is a string of key resistance levels at 0.9135, 0.9169 and 0.9195 which are all capable of generating a reversal lower. Therefore we may have even seen the high at 0.9132 yesterday. Thus treat the upside with caution. Only a break above 0.9112-15 would threaten a retest of 0.9132-35 and possibly 0.9169. Then keep in mind the 0.9195 resistance. If I have any preference then I feel the 0.9106-12 area will cap...
8th March: If we're in a complex correction then the 0.9135-69 area will probably cap else the 0.9195 resistance is also a barrier. Therefore only a break above 0.9200 would produce stronger and swifter follow-through to 0.9280 at least and possibly the 0.9327 corrective high.
The short term structure is a bit mixed but overall I remain with a bearish preference. Ideally I'd like to see the 0.9106-12 area cap and from there losses below this morning's 0.9073 low can then accelerate below the 0.9056 corrective low and probably through 0.9010-30 also to reach the 0.8980 lows. This could stall the decline for a correction. Breach would maintain the bearish momentum for 0.8945-55 and below.
8th March: I still tend to feel we are in a correction - even if it has climbed above 0.9067. While 0.9135-69 caps we should then see a return to the 0.8801 low… A push to 0.9195 would imply a more shallow correction.
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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. (+165 pips)