Bias: I look for a pullback lower from the 1.6436-47 resistance
Since writing the general outlook we have seen the rally I had been expecting. While the 1.6340-70 area supports this should extend further to the 1.6436 target (allow for 1.6447.) However, I feel this will cap for a pullback lower. Thus only a break above the 1.6447-59 resistance would maintain the bullish momentum for gains above 1.6478 and 1.6529-55 and onto the 1.6615 resistance at least. I feel that should be the most we see. However, note next resistance at 1.6727.
19th January: I look for gains to stall at 1.6436-47 but then while the 1.6200-40 area supports I feel we shall see a move to 1.6615 at least and 1.6727 at most before a deeper correction.
The bearish divergence in the 4-hour chart has been joined by one in the hourly chart and I feel we should be watching the 1.6436-47 area for bearish set ups. From this resistance I shall look for losses back to 1.6340-70 initially followed by the 1.6299 corrective low. This should cause a pullback higher. Overall, however, I feel the 1.6200-40 area may eventually be tested.
19th January: I remain more bullish although I do see risk of a larger correction lower from the 1.6436-47 area which can reach 1.6299 minimum and probably 1.6200-40 approx. Only below 1.6190 would generate stronger losses at this point.
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 along with a new report showing the prior day’s support & resistance levels.