Bias: Ideally the 1.4951 (max 1.4939) support will hold for gains to 1.5061-69 else see a dip to 1.4906-15 before higher
The rally came at long last and in trying to work out the route to the 1.52 target I feel we probably have maybe two more legs higher to come. The scenario I favor is a pullback to around 1.4951 (allow for 1.4939) which should be then followed by a rally back to the 1.5910-19 area again, a smaller correction and then follow-through to 1.5061-69. If this is seen then I'd expect a much deeper correction. If the 1.4939-51 area doesn't support then the 1.4905-16 area should. If this occurs then we should see the same type of move except the follow through after the retest of 1.5010-19 should extend directly to 1.5200-06... though will probably take a day or two.
10th November: Look for 1.4906-16 to support now for eventual gains to 1.5200-06.
Any bearish stance should be treated with caution. There will be selling opportunities but keep in mind the main direction is higher. Indeed, I feel that the first move should be lower to 1.4951 (max 1.4939). If this holds and triggers a rally to 1.5061-69 then I feel this will be a good selling level for what should be a deeper correction. Any earlier break below 1.4939 probably only has potential to 1.4905-16, maybe even stall a few points above. If there is any bigger and direct selling opportunity then it is on a break of 1.4900 which should trigger quite a firm reversal lower to the 1.4808-16 lows.
10th November: The break higher should provide us with a selling opportunity around 1.5200-06. The first major target will be back close to the 1.4626 low.
Please note that the talk about the daily uptrend line in EURUSD is totally misleading as there was no valid trend line that support across key swing lows in the uptrend. This is why it did not hold - it should never have been drawn in the first place
Equally, any suggestion that there is an uptrend line from 1.4626 is equally misleading as there has been only one corrective low since and as such any line is unstable and could lead to losses...
Please do not get tricked by faulty analysis..
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.