| Resistance: | 1.1442 | 1.1473 | 1.1505 | 1.1530-62 |
| Support: | 1.1380 | 1.1340-56 | 1.1313 | 1.1240 |
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Bias: Lack of follow-through higher yesterday leaves the downside vulnerable
Daily Bullish
We saw gains as expected yesterday but these stalled at 1.3342. I can't see too much suggest this is going to follow-through and thus it will be better to wait for confirmation of gains. A break above 1.3230 would definitely help and should then extend the move to the 1.3270 pivot area but what will provide a more robust rally is a break of the 1.3297 high. If seen the odds will begin to favor follow-through above yesterday's 1.3342 high that would signal 1.3430 at least and potentially back into the 1.3498-29 area - possibly 1.3590+.
Medium Term Bullish
2nd April: We may well have seen the top already at 1.1548 and only a move back above 1.1530-48 would maintain the potential for the recovery reaching 1.1579 and 1.1652-74. However, it does seem to be growing more unlikely.
Daily Bearish
The cap just 6 pips above the 1.1499 resistance and decline is threatening to allow the larger downtrend to resume. Still there are some support areas to break to provide final confirmation. A move below 1.1420-25 would extend the downside to 1.1380 again and while it may cause a correction I feel that we shall eventually see follow-through below the 1.1340-56 pivot support and corrective low. Once seen expect additional declines to 1.1222-40 which should hold for a correction. Next supports are at the 1.1157-67 lows.
Medium Term Bearish
1st April: If we reach the 1.1652-74 area I feel this will provide a cap and therefore look for a reversal pattern. Any earlier break below 1.1340 would threaten direct losses that should stall in the 1.1157-1.1222 area for a pullback and then lower again...
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 now available on the Daily Forecast page of my web site.
