Bias: The 1.3697-05 resistance is the key pivotal point here - if this breaks expect a strong rally - else look for new lows
While the rush back down to 1.3595 has potential to extend losses I am not so certain. There is support at 1.3650-55 and if the 1.3697-05 resistance breaks expect a sustained rally. This should quickly rally back above 1.3436-66 and 1.3799 and back to around the 1.3838 high. This may well provide a temporary stalling point but overall, depending on how quickly this develops I will be looking for extension to 1.3883 at least. The next larger targets are at 1.3945 and 1.4004.
12th February: A break above 1.3697-05 would imply follow-through back to 1.3838 and 1.3883 en route 1.3945 and 1.4004… This should hold for a correction lower.
The upside failure almost looks certain to follow-through below 1.3585 but I would recommend waiting. Until the 1.3585-95 lows break there is still a question mark over this decline. If seen then look for extension to 1.3517. Cautiously I feel this will hold for a correction higher. While it remains below the 1.3580-00 resistance then look for eventual extension to the 1.3433 area minimum and on a strong extension to 1.3398.
12th February: While the 1.3866-83 area can cap we cannot ignore the bearish threat. From this area a move back lower could easily retest the 1.3585 low and then extend to the original target at 1.3433-70 and possibly 1.3398. However, this now looks a stronger support for a larger reversal.
For access to my daily support & resistance levels please see the Daily Forecast page of my web site
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.