Bias: While the 1.3667 area supports I see room for gains to 1.3711… While this caps the next move should be lower…
Yesterday's lack of interest seems to point to a test of the 1.3711 area and preferably the 1.3667 area should support for that. However, take care here as I feel that while any stronger bearish stance is valid then this is the area from where it will start... Therefore a break above 1.3711-15 would move to retest the 1.3734-41 area. It should cause a pullback on first test but if this area breaks then it would appear to generate a stronger rally up through 1.3771, 1.3811-35 and to the 1.3910-35 area at least...
11th March: I am still not in favor of the 1.3734 high breaking but clearly things didn't go to plan yesterday and there is a daily bullish divergence. If this high breaks then expect 1.3833-67 & 1.3935 at a minimum and it may well be stronger.
I feel we should concentrate our focus on the 1.3711 area. While this caps we should see the downtrend resume. Thus, watch for a bearish trade set up here. A break below 1.3655-67 would then trigger stronger losses back through the 1.3620 corrective low and then onto 1.3587 & then the 1.3533-58 area at least. This could cause a temporary correction. Overall I'd expect any losses to quickly reach the 1.3442 low.
10th March: So far the 1.3734 high has not been revisited and as long as we see losses below 1.3533 & 1.3507 we'll see losses extend to 1.3348 minimum and then 1.3222-54. As this progresses I shall update as to the chance we shall see 1.2960.
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. (+240 pips)