Bias: Mixed € waiting for breaks
Once again price whips back lower but fails to sustain the losses and this morning sees price edging back towards the 1.2661 high. I see resistance also at around 1.2686 and break here would suggest the ability to sustain the upward momentum for 1.2725 and probably the 1.2778 area. Any further will require breach of 1.2780 which would seem as if it should spark a retest of the 1.2898 high. Given the market's distaste for breaking highs I doubt this will occur....
9th March: Friday's unexpected recovery really complicated the entire picture given the expected low next month. However, to generate any real strength we're going to require a break above the 1.2898 high and then 1.2990.
Price dipped a little lower to the 1.2555 level but has seen a pullback from there. While the 1.2686 area caps I feel that we are more likely to see another attempt lower. A break back below 1.2612 will assist a return to 1.2555 and probably breach for the 1.2511-25 area. Take care around here as this could provide a whip back higher in a sideways consolidation. Below 1.2505 would approach the 1.2455 low again. Below there note the 1.2388 support.
9th March: Having seen Friday's larger pullback I wonder whether we're going to see a larger consolidation pattern continue before we can see the final move lower to the 1.2328 low€¦ At this point I feel this are will hold but depends on when the downside resumes.
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