Bias: While 1.0506-19 caps I feel we shall more likely see a retest of 1.0372-86 before new highs next week
No break above 1.0506 and instead a messy corrective move that doesn't look as if it should break higher just yet. I prefer to wait for a move back to the 1.0372-86 area which should occur by the end of today - maybe into tomorrow - and from where I feel price can make a more direct attack higher to move above 1.0506 towards the 1.0548 area minimum. Take a little care as this was a major swing high in the decline. However, I feel the greater risk may well be to extend gains all the way to the 1.0669-74 target area. This may be the limit of the gains but also take note of 1.0753 and 1.0825.
23rd December: We continue to see gains as expected and while 1.0372-86 supports I look for a move above 1.0506 to 1.0548, 1.0609 and the 1.0669-74 target. Take note of momentum conditions then. Further resistance is at 1.0753 and 1.0825.
Even though EURUSD broke lower price here couldn't manage to really test the 1.0506 high. I see a small risk of seeing 1.0519 but I have doubts. More likely I feel we'll see this drift back lower below the 1.0460-75 pivot support area which should extend losses to 1.0435 and then to the 1.0372-86 area. I look for a base here for stronger gains. However, note next supports at 1.0345 and stronger at 1.0280-04.
21st December: There is no change to the underlying expectations of seeing the 1.0530-52, 1.0609 or 1.0653-67 resistance areas. Only an earlier break below 1.0233 would imply more direct losses that may even extend below 1.0000 again.
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.