Bias: While 1.3909-16 caps I look for losses below 1.3776 & possibly a strong down day to below 1.3501
Yesterday was another messy day but price is finding the 1.39 area difficult to overcome and I see resistance at 1.3916 that looks like being satisfied by this morning's spike to 1.3909. Thus only a move above 1.3916-25 would provide a stronger move higher but we still need to observe resistance at 1.3938 and 1.3960-80 which also have the capability to cap and cause a stronger reversal. Only above 1.3980 suggests a much stronger picture for gains back above 1.40 to 1.4058-90...
10th March: Yesterday's losses mean we can lower our reversal area to the 1.40 level (aggressive) and also 1.4200.
I am cautiously feeling that this morning's high at 1.3909 may have completed this complex correction. We should note resistance at 1.3916 also. While this caps and we see a break below 1.3821 we should see an initial decline to 1.3776 but take care as this could cause a pullback However, I do expect later breach for losses to potentially become aggressive once again and extend lower to 1.3708-22 and then the 1.3653 low. This area could again cause a correction. However, I'll expect eventual follow-through for below 1.35.
10th March: At last we are on out way lower and I feel we haven't yet reached the next major support. I have two major targets, the first at 1.3427 and the second around 1.3087-1.3163€¦ We'll observe how the decline develops to judge which support will hold.
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 now available on the Daily Forecast page of my web site.