Bias: It looks like we're going to see losses to 1.0317-43 (max 1.0266)
Very clearly price broke lower and this generated losses through 1.0445 and to just below the 1.0415 low. This appears to imply that we still have one more leg to go below 1.0398 to reach 1.0343 and possibly 1.0317 - and I favor the lower target. It is around here that we need watch for bullish divergences to develop in the hourly chart and possibly 4 hour. While this holds look for a reversal back to the 1.0405-15 area initially and later higher. Only an earlier break above 1.0502 would trigger direct gains through 1.0535-76 and to 1.0611 at least.
2nd December: We've seen the 1.0415 low and it seems more likely we'll see the 1.0317-43 area as the base and where we should be looking for bullish set ups. From here I feel we shall see a much larger rally - back above 1.0502 and 1.0611 will maintain the upward momentum k.
The break below 1.0448 extended losses to 1.0405 and with momentum still looking bearish we are likely to see these extend further. We just have to watch the 1.0470-02 resistance. While this area caps look for losses to move back down to the 1.0398-05 area and probably force a break through for 1.0343 minimum and I favor the 1.0317 target. I suspect this will hold and here we should be looking for reversal signals from momentum. However, also note an alternative deeper target at 1.0266.
2nd December: It looks like we'll see losses to 1.0317-43 (and at most 1.0266) but only breach will generate stronger extension lower.
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