Bias: Just a bit mixed but by the end of the day I feel we should see losses
While we did begin to see losses yesterday these didn't move too far and from the 1.2805 low we have seen a move to new highs. However, we now have bearish divergences developing in both hourly & 4-hour charts and therefore even if we see a new high this should be capped around the 1.3015-32 area. While 1.2873 supports a move above 1.2974 would extend gains to the target area but should stall there. Therefore, only above 1.3032 would maintain the bullish momentum for 1.3106-17 at least...
2nd March: Price is pushing higher quite strongly and this is suggesting a move through to 1.2856 initially and afterwards to 1.2948-80 at least and potentially the 1.3015 high. Also note resistance at 1.3064 - then higher at 1.3250.
I do feel with the hourly & 4-hour bearish divergences that we shall see a correction lower before long. However, this may well mean we shall see one more new high before that occurs. If a break above 1.2974 should provide a selling opportunity around 1.3015-32 so watch for a reversal pattern there. Only an earlier break below 1.2870 would undermine the bullishness and risk direct losses back to 1.2805-24 at least. Again breach here is needed to trigger stronger follow-through for 1.2752-81 at least...
3rd March: Yesterday's gains mean we can raise our reversal level to the 1.2660 support. Only break here would bring us lower to the 1.2124 area once again.
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