Bias: While 1.2335 supports the next move should be higher to above 1.2518
Losses were limited yesterday, dipping slightly below the 89.84 support but bouncing from 89.70… We can't ignore the fact this has caused a bullish divergence so there is a risk that we could see a pullback here before the larger downside develops. We have just seen the 90.15 pivot support hold this morning and if this can empower price to move back above 90.45 and then above yesterday's higher at 90.75 then there is a good chance we'll see the pullback extend to 91.06-37 (max 91.77.) Only above could threaten the 92.84 area...
11th February: The break of 90.72-88 does seem more bearish but there is one last scenario that would cause a push above 91.10 & 91.48-78 to cause a quick push to around 92.84 before lower.
Continue Reading Below
Only mild follow-through seen yesterday but the correction to 90.75 provided what could be a complete correction. There is minor support at the 90.15 pivot support which it has seen this morning. Breach should extend losses to yesterday's 89.71 low where loss should open up quite a solid decline - so beware. If seen then expect a minimum move to 89.09 but I suspect further. It has to cut through the congestion area that has a base around 88.50 and as long as it manages this then today's target should be 87.80. Below is the 87.10 low.
11th February: 90.41-72 has broken and should imply further losses towards the 87.10 low. Just take care at 89.09-30 and 88.38 on the way. I suspect a small bounce from around 87.10 but the next larger target is at 82.00...
For a full description of how to use the analysis please see the Analysis page of my website.