Bias: Early trading should see 1.2625-35 but then a pullback remaining above 1.2530-50
The 1.2510 support broke but only led to losses to 1.2467 from where we have seen a solid recovery. I feel that first thing we should see these gains extend to the 1.2625-35 area but this should cap. Expect the retracement to reach the 1.2550 area (max 1.2530) following which the upside can follow-through once again. A move above the 1.2635 area would the provoke follow-through to above 1.2671 and onto the 1.2764 high with a final target expected in the 1.2804-31 area.
20th February: I was disappointed with the drop to 1.2467 but the recovery is encouraging and I do feel we'll get to reach the 1.2804-31 area at least. I feel this may well cap. However, any breach of 1.2831 would extend gains to 1.2884 and possibly 1.2930.
The recovery following the dip to 1.2467 has been firm enough to avoid a second test I feel. Having altered the wave structure I was considering I see support at 1.2445-62. It was probably satisfied by yesterday's low. Thus only below 1.2530 would raise the threat of a second test but I still feel the 1.2445-62 area will support. Only breach extends losses to 1.2279.
20th February: The dip to 1.2467 and recovery was frustrating yesterday and it seems as if we shall have to wait for any losses. The key support I see now is at 1.2445 and thus only below here would threaten a move back to the 1.2124 & 1.2023 lows.
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