Bias: We should get a pullback lower - either directly or more likely from 1.0506-18
I feel that we are due a correction lower. However, there seems to be one leg missing in the rally and while the 1.0406-20 area supports we should see the rally extend one more time above yesterday's 1.0461 high and onto 1.0506-18. This should hold. Thus, any stronger bullish stance is going to need a break above 1.0520 and if seen would extend the rally more directly through to the daily pivot resistance around 1.0540-50 and then to 1.0589 and possibly the 1.0609 resistance.
21st January: This is still looking good for a move towards the favored 1.0667 target and may just overlap through to 1.0727.
While the larger picture is bullish still I feel we should see a fairly deep correction soon. While 1.0406-20 supports and we see a move into the 1.0506-18 range I feel we'll see a cap here. Look for a bearish trade set up. From this peak I shall look for losses back below 1.0460 and 1.0406-20 with the target likely to be in the 1.0346-73 area. This is where I see the uptrend resuming. Thus only a break below 1.0340 places doubt over the upside with support then at 1.0290-10 and then lower at 1.0229-50.
21st January: Hold off from any stronger selling opportunities until around the 1.0609 or 1.0667 areas. There is also resistance around 1.0727. Only directly below 1.0340 now would risk direct slippage.
For access to my daily support & resistance levels please see the Daily Forecast page of my web site
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 along with a new report showing the prior day’s support & resistance levels.