Bias: A move below 1.4230-61 will extend losses to 1.4123 at least - while back above 1.4372 will reach 1.4473-1.4509
Yesterday really didn't see the recovery I had been expecting and this generates some caution as we approach the 1.4261 low once again. This must hold to be able to retain any bullish argument and will only really be confirmed until we get above yesterday's high at 1.4372... If seen then look for follow-through to 1.4473 and maximum 1.4509... From there I'd expect losses.
18th December: Clearly the downside is far to robust to talk about buying intermediate support levels. However, for the while note the major projections at 1.4260-80, 1.4208, 1.4123 and 1.4014.
With the upside really not showing through at all and the return to just above the 1.4261 low we have to be careful as breach would extend losses to 1.4230 at least. We should pay some respect to this level as there is a scenario that would provide a reversal. More likely we'll see price develop more sustainable losses that should extend beyond 1.4187 and to the 1.4123 level at least. I would like to think that it should hold and thus take note of the momentum conditions. If they remain weak then the 1.4014 area is implied..
21st December: We're now very much closer to the final targets but there is no sign of reversal yet and we should be noting support at 1.4208-30, 1.4123 and 1.4014. This lower support looks attainable now - so perhaps I'll add 1.3820 as the deepest we should see.
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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.