| Resistance: | 1.2400 | 1.2436 | 1.2463 | 1.2480 |
| Support: | 1.2325 | 1.2285 | 1.2230-45 | 1.2182 |
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Bias: While 1.2325 supports I feel the risk is higher still…
Daily Bullish
While not exactly what I was expecting we did see gains which stalled at 1.2505. From there the correction has reached 1.2325 and I feel this was probably deep enough for the correction. Thus I favor the upside but do recognize the risk of earlier sideways range trading. We need a move back above 1.2400 to assist back to 1.2460-67 at least and maybe even 1.2480. If we are to see a sideways move then this area should cap. Back above 1.2480-05 will extend gains to 1.2581-1.2628 but I expect a further correction.
Medium Term Bullish
21st April: Yesterday's strength appears to suggest a retest of 1.2713 and I suspect the 1.2300-10 area (max 1.2270) should support to allow the rally to develop. On the way to 1.2713 there is resistance at 1.2553-84.
Daily Bearish
I still feel the main direction is higher and suspect that the 1.2325 low was the most we'll see for now. I do also note support at 1.2285. For any stronger bearish stance we shall need break of 1.2285 and if seen should accelerate losses down through 1.2245and probably to the 1.2182 area. Take care here as this could stall for a correction. Next support is then found at 1.2156 and 1.2105.
Medium Term Bearish
21st April: I don't want to change my overall bearish view but yesterday's rally does seem to threaten a recycling of the correction back to around the 1.2713 high… Only an earlier break below 1.2270 would put us back on track for losses.
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.
