Bias: Slightly mixed but prefer a bullish stance while 1.3852-66 supports…
The sharp moves are difficult to read but I feel that overall we have not yet completed the upward correction. Thus, while the 1.3852-66 area continues to hold I feel that we are more likely to see gains back above the 1.3925-50 peaks and take us right back to the 1.4025 high and beyond. I suspect that around 1.4066-84 we should see a pullback but the larger target remains at 1.4133. The only complication that could occur is a dip to 1.3786-20 before higher.
4th February: With the break of 1.3981 the natural target is back at 1.4133 (and minor risk of up to 1.4188.) This will require the 1.3852-66 area to remain intact. Watch the 1.3786 support also that could hold in a more complex correction but then be limited to 1.4025-66.
Only look for losses if the 1.3852 low breaks. This event would extend losses to 1.3820 at least and potentially the 1.3786 support. These two areas are at risk if we are going to see a larger complex correction that could still generate a second recovery. Thus the stronger bearish signal will be loss of 1.3785 which will then trigger test of the daily 1.3747 low and potentially an eventual target around 1.3652 minimum.
4th February: I retain the 1.4133 resistance as the ideal selling level. Only an earlier break of 1.3852 and 1.3786 would suggest more direct losses to 1.3652 minimum and possibly even 1.3576.
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.