Bias: This is still balanced between bullish & bearish … however, if the upside develops the gains should be limited
If this is to continue higher then the 1.3500-28 area should be tested but hold. Watch for bullish trade set ups in that area. From here a bullish scenario would generate a rally back towards the 1.3691 high again (approx), pullback and then extend towards 1.3752-72 and no higher than 1.3812-14. From that high a pullback should be expected.
12th April: It would be wrong to ignore the upside threat. It is my view for the coming 24-30 months but I hadn't expected it to develop quite at this point… Above 1.3814 would confirm a stronger reversal higher but still take care at 1.3850 and 1.3907.
The high at 1.3691 keeps the potential bearish scenario in the running… To confirm this we'll need a break of 1.3500-28… I feel we shall see losses extend into this area and if no bullish trade set up develops and we see a drop below 1.3500 then the outlook will be for extension to 1.3485 minimum and probably 1.3428-47 and 1.3371-79 en route the 1.3267-82 lows.
13th March: Yesterday's 1.3691 high does have potential to set up a nice projection to the 1.27-1.28 area which has been my preference. However, until 1.3495-00 breaks take care - if this happens then look for stronger losses, initially to 1.3267-82 and then lower.
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. (+90 pips)