Bias: Watch support at 142.42-60 and 142.05-15 for a reversal higher
As warned the upside momentum was slowing at the peaks and with USDJPY and GBPUSD failing the impact has been strong. However, I see two support areas to watch for - first where we are now at 142.42-60 and the second at 142.15-15. I feel one of these two will hold. Look for bullish trade set ups. A move back above the 143.13 corrective high would be encouraging for 143.46 minimum and potentially the 143.80 pivot resistance. Take care as the recovery is likely to be quite choppy but eventually reach the 144.85-02 area once again.
16th April: I remain bullish but the consolidation looks set to continue. However, I do feel we are at the base of the current decline and should get a bounce from either 142.42-60 or 142.05-15. This should remain below the 144.85-02 area for a while longer before the upside extends.
There does seem to be a more convincing argument for the upside while the 142.05-15 area holds. Therefore only a break below 142.00-05 would cause a complete reversal lower for 141.47-73 initially. Below here extends to the 140.60-96 area again.
16th March: Only a break below 142.05-42 undermines the bullish structure for the correction to recycle to 140.60-96 9.
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. (+190 pips)