Bias: While the 90.94 area supports look for a rally to the 91.75 target before correcting lower
The break above 90.51 has opened up a potentially quite bullish structure. For now I think we'll see the 90.94 support hold and generate follow-through back to 91.37 and then followed by 91.75. I feel this will cap for a correction. Thus, only above 91.75-80 would maintain the bullish momentum for 92.02 and then the 92.25-35 area. This would merely imply a deeper follow-through but should still cause a correction lower.
18th February: Yesterday's break higher has opened the potential for a much stronger bullish structure. A break above 91.75 will confirm. We should then expect a closer test of the 93.75 high. Price must remain above 90.00.
Momentum looks bullish and the break above 91.27 looks bullish too… However, if we see 90.994 support and provoke a move to the 91.75 resistance then look for a bearish trade set up there. This should be good for a pullback but this shouldn't move below the 90.57-67 area. Thus, only a direct loss of 90.90 and the 90.70 corrective low will suggest we've moved into a bull trap and generate a stronger reaction lower. Then watch support around 89.54-70 before the 88.57-82 lows.
18th February: The only way I can see this as bearish is if we have seen a really messy correction from the 89.13 low which has caused an irregular correction. Break will come below 90.50-70… If seen the downside will be resurrected.
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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 in the Trader Package review. (+195 pips)