BIAS: Feel we should expect a complicated and long correction from around 1.3649
Resistance: 1.3670 1.3690 1.3715-25 1.3755-65
Support: 1.3649 1.3633 1.3619 1.3597
MAIN ANALYSIS: The decline finally stalled at 1.3649 and we're seeing the long consolidation expected. There are two options for this:
- a direct move back higher to 1.3710-25
- a dip to 1.3633-39 and then a recycling back higher to 1.3710-25
Once the 1.3710-25 area has been reached we should then see losses to 1.3619-25 minimum and potentially 1.3597. This should support for a rally that could reach 1.3810 again.
COUNTER ANALYSIS: Only back above 1.3730-50 would frustrate and suggest further sideways consolidation. Below 1.3590 is the 1.3524-53 support area.
MEDIUM TERM ANALYSIS:
20th December: Yesterday's developments seem to work really well across the Europeans and point to a long sideways consolidation. Here this should see support around 1.3597-20 and trigger gains back higher. Only below 1.3520 would see further slippage lower...