Bias: We should see a test of the 1.3687-07 area … ideally this should cap else see stronger gains
The downside failure caused a recycling of the entire correction and as far as I can see the 1.3687-07 area is the critical pivotal point between bullish & bearish. I see a higher resistance around 1.3728-33 but feel that's a bit too high. We shall need to observe the momentum conditions in this area and if they remain bullish then the risk is a surprise push higher and take care as this could be quite sharp and extend gains to the 1.3818-38 area. Next major resistance appears to be at 1.3920.
3rd March: Only back above 1.3787-07 is going to threaten follow-through initially to 1.3818-38 and possibly 1.3920… I will review if this break occurs but at this point it would appear quite bullish.
Watch the 1.3787-07 area. As long as this is approached with momentum slowing in a bearish divergence this would appear to be just a recycling of the correction from the original 1.3449 low. A break below 1.3590-15 would assist this lower and should then extend losses through 1.3550 and to the 1.3514 swing low. This should cause a brief correction at least. Below would open up the 1.3442-49 lows once again.
3rd March: It looks like we'll have to allow for 1.3787-07 but as long as this can hold the downside can still resume through the 1.3442-49 lows and to 1.3222 minimum and potentially 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. (+80 pips)