Bias: Ideally I'd like to see the 1.6066 resistance hold and for losses back to 1.5936-50 followed by the 1.5832 low
The pullback has retained a more corrective structure but one which I feel should soon change into a more bearish one. I see resistance at 1.6066 and ideally this should hold while the bearish preference is valid. Therefore breach of this resistance would suggest an alternative structure that should then be more bullish. If seen then look for follow-through above 1.6118 and probably into the 1.6144-60 resistance. Take care there as this could hold for a correction. Above 1.6160 would risk extension back to the 1.6240-76 area...
4th January: I still feel there is one more intermediate leg lower before this can recover more strongly. I'd prefer to look for buying opportunities closer to the 1.5706 low. Only an earlier break above 1.6381-1.6410 would suggest the risk of an earlier resumption of gains.
This is not 100% clear but I feel the general move we have seen over the past day looks more corrective within a bearish structure. If this is right then the 1.6066 resistance should cap. Look for a bearish set up there. Back below the 1.5990-10 pivot support area would extend losses into the 1.5951-70 support. Again, take care here as this could hold if price is going to hold within a corrective structure. Below 1.5950 extends to 1.5886-11 and potentially the 1.5832 low.
4th January: The downside still appears weak while the 1.6352-81 area caps and this will raise the chance of seeing a retest of the 1.5706 low.
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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.