Bias: Mixed - waiting for breaks but with a more bullish bias if the 1.6494 resistance breaks
Loss of 1.6351-85 extended the decline to just below the 1.6322 support from where we have seen a modestly strong bounce. There is risk this could turn into a larger sideways consolidation and this would be signaled by a break above the 1.6485-94 highs. We'd still have to be careful at the 1.6515 Fibo retracement but overall I feel we'd likely see a choppy rally through 1.6551-84 and onto somewhere into the 1.6612-56 area. However, this should cap. Thus only above 1.6660 would return us to the 1.6720-45 area.
7th December: It looks as if we have seen a major high but the lack of downside thrust is beginning to suggest potential for a sideways consolidation. Note resistance areas at 1.6525 and above there at 1.6571-96 followed by 1.6649-75. Only breach would retest the 1.6720-45 area.
To avoid a more direct rally price needs to remain below the 1.6485-94 peaks. To confirm losses we'll need a move back below the 1.6428 low and if seen then the bias turns slightly in favor of the downside with next support at the 1.6395-05 area followed by 1.6353-70. Take care here as this could hold for gains within a tight consolidation range. Below 1.6350 would take us back to yesterday's 1.6312 low and probable follow-through to 1.6243-61 at least - at most 1.6208... but then a reversal higher.
8th December: Even if we do see this move lower I feel the 1.6208-51 area is going to hold any immediate push.
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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.