Bias: While 1.3456-66 caps look for losses to 1.3329-39 before recovering
In the end we had a marginal new high followed by the expected losses. I feel we should see a pullback from the 1.3390-95 area that has potential to reach back to around 1.3456-66. However, I still feel we'll see the 1.3329-67 target after that - probably towards the low. Thus look for a bullish set up around this lower support for what should be a sizeable (but probably erratic) rally. Directly above 1.3470 would spark this recovery earlier, initially for yesterday's 1.3520 high but then above..
21st April: This still looks like a potential triangle to me and as we approach the 1.3329-39 area seems to be the likely target. As long as this holds we'll see continued range trading probably below 1.3650.
The 1.3329-67 target remains but I suspect a pullback from just below current levels to around 1.3456-66. Look for bearish trade set ups here. From here we should see the decline to the 1.3329-67 target - probably the lower end. There is a potential bullish divergence developing in the 4-hour market and if this is matched by the hourly it should confirm this base. Only below 1.3300-20 would retest the 1.3267-83 lows. Next support at 1.3222.
19th March: There is some risk of seeing 1.3357-67. However, only a breach of this support would extend losses to 1.3303 at least and after a correction to the 1.3267-83 lows… This would make things look a lot more bearish and maybe raise the risk of extension below 1.30.
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. (+0 pips)