Bias: While 1.0116-36 caps I see room for extension lower to 1.0015 before a correction…
This seems to be clearing up with the break below 1.0084… I feel we may have seen the full correction at 1.0116 but we should allow for 1.0136. Only a break above 1.0140 would cause a stronger recovery back through 1.0160 to 1.0193 and 1.0231. At this point I wouldn't expect any higher. However, note resistance at 1.0250 and stronger around the 1.0316-19 peaks. More likely we'll see a buying opportunity around 1.0015 - watch for a bullish trade set up here.
18th March: I see limited pullbacks now until the 0.9907 area. Only an earlier break above 1.0140 & 1.0231-50 would lead to a retest of the 1.0316-19 peaks and it is this area that needs to break to generate a stronger recovery.
Loss of 1.0084 has clarified the structure and I feel we are currently seeing a probable selling opportunity around the 1.0116-36 area. From here look for losses back to the 1.0069 area and while we should see a mild correction look for an eventual decline to the 1.0015 support. I feel this will hold for a correction higher.
18th March: Deeper losses seen and this should see a test of the 1.0015 support where a pullback is due. However, I feel it will be only a correction and should later reach 0.9907 at least before a stronger recovery.
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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 in the Trader Package review. (+55 pips)