Bias: We have to take care in the 1.0059-72 area - while this supports we could see a move back to around 1.0165
The pullback from the 1.0193 high has been very deep and therefore we have to be careful as I feel it may just cause a sideways consolidation to develop. Note support at 1.0057-72 and look for a bullish set up pattern. If this holds then we are more likley to see a rally back above 1.0119 and to the 1.0165 area. That should hold to see a reversal back lower into range. I'll only revert to a directly bullish scenario if the 1.0193 high is taken out cleanly. If the 1.0059 support gives way I still feel we'll get a bounce from 1.0032-34 so also take note of possible bullish set ups here.
16th November: The deep correction may well be a reversal. I feel that the 1.0032-59 area will support for a pullback. If the higher level holds then we could see 1.0165 again before back into range. Only back above 1.0193-00 would imply the larger rally is back on track.
While losses have been far steeper than expected I don't want to get carried away with a strong bearish stance at this point. I see support at 1.0059-72 and also at the 1.0032 low. One of these will hold today and I suspect it will be the higher level. Therefore, only a move below 1.0032 is going to cause follow-through to 0.9962 and 0.9917-32... and at most the maximum MT target at 0.9870. Until that break I feel the larger risk is a reversal back towards the 1.0165 area - so look for sell triggers around the 1.0165-93 area.
16th November: Well, it seems as if the bearish MT targets at 0.9917-32 and max 0.9870 may well be back on track. I suspect we could see a few days of 1.0059-1.0165 (or the full 1.0032-1.0193) consolidation before it breaks lower. However, if we get to those lows that should provide reversal.
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