Bias: While 1.0573 supports I look for gains to 1.0640-46 initially and later towards 1.0734-43
I feel we have probably seen the corrective low at 1.0573 but also note the 1.0535-40 pivot support. While these areas hold I shall be looking for extension to the 1.0540-46 area (max 1.0662) but expect a second correction from there but this should remain above the 1.0600-20 support. That should provide a launch pad for gains through the 1.0640-62 area which should then push up to the 1.0734-43 resistance. Take care here as I feel the risk of another temporary cap is high here. Note next resistance at 1.0761 and then 1.0815 followed by 1.0908.
14th December: The gains seen on Friday are encouraging and while the 1.0535-73 area supports I shall be expecting gains to 1.0734-43 at least. However, overall I see further resistance at 1.0911 and 1.1027 that should be watched carefully.
I feel the downside risk has receded and thus we should be aware of the resistance points which could provide corrections. The first is at 1.0640-62 and the second at 1.0734-43. Thus look for bearish set ups to confirm these resistance points. However, any stronger bearish stance will require a break below 1.0535-40 - only then would it imply a move back lower into the recent range to 1.0478 at least and potentially the 1.0405-35 area.
7th December: So far we've not seen any attempt to break below the 1.0405 low and this still remains as the key support to generate any further follow-through lower.
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.