| Resistance: | 123.41 | 123.95 | 124.24 | 124.54 |
| Support: | 122.95 | 122.64 | 122.11-23 | 121.66-88 |
Bias: I think we'll get a bounce - the uncertainty is whether this will occur directly or after one more dip…
Please read the attached PDF file which provides more detailed analysis
Daily Bullish
We have an hourly bullish divergence here while 4-hour is oversold. I can't make up my mind whether we'll see a direct recovery or will need to see a dip to the 122.11-33 or even 121.66-88 areas before the recovery. Resistance is currently at 123.41 and while that caps the additional extension lower can be seen. If we see a move down to 121.66-88 first look for a bullish trade set up. Alternatively a direct break above 123.41 should see a retest of the 123.73-95 area. A move above this resistance zone would encourage follow-through to 124.54 and potentially the 125.06-23 highs.
Medium Term Bullish
18th March: I see limited pullbacks now until the 0.9907 area. Only an earlier break above 1.0140 & 1.0231-50 would lead to a retest of the 1.0316-19 peaks and it is this area that needs to break to generate a stronger recovery.
Daily Bearish
If we do see losses today I don't think they'll be extensive. While 123.41 caps there is still chance of a move below 122.64-78 to extend to 122.11-23 at least and probably 121.66-88. However, I feel that should be the limit of today's downside. Thus, only below 121.45-60 would extend losses through 120.94 & 120.50 towards the 119.64-75 lows.
Medium Term Bearish
19th March: Losses seen and only below 121.45-60 would extend into the 120.20-70 congestion area ahead of the 119.64-75 lows.
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 are now are available on the Daily Forecast page of my web site within the Trader Package report reviewing the support & resistance levels. (+55 pips)
