Bias: Mixed - waiting for breaks but perhaps there is more risk now of seeing the 122.44-64 area
With EURUSD appearing to confirm that it wants to decline I can't get too bullish. However, with USDJPY firm and the potential for a pullback higher in EURUSD we should be aware of the upside risk that on a break above 121.40 would retest the 121.89 high and this time we should see extension to the 122.44-64 resistance. I feel this would cap and only a break above here would maintain the upward momentum for 123.40-72...
3rd March: Only back above 122.44-92 would retest the 124.52 & 125.23 highs.
With losses expected in EURUSD I feel the downside should resume here also. This should either come from the 122.44-64 area or a direct break below 120.85 and the 120.39-54 corrective lows. Once seen look for the downside to reach the 119.64 low at least. If seen directly then we may just have chance of seeing follow-through to 118.35-78.
3rd March: While 122.44-92 caps I still look for a second sharp decline below 119.64 and down to 118.92, 118.33, 117.14 and the favored target at 116.30-78.
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