The Daily Forecaster

[B]Bias: [/B] I'd prefer a bullish scenario but wait for a break above 90.48-80 -
until then there is still downside risk

Friday's drop really puts price on the back foot. Indeed, there is considerable resistance around the 90.48-80 area and it is only above here that would bring potential for the preferred rally. Right now we are meeting first resistance at 90.07-24 and while this holds we could see another drop.
The key support as far as I can see is between 88.75-82 & 89.02. If there is a bullish reversal pattern and 4-hour momentum has begun to turn higher in a bullish divergence this could provide the base. A direct break above 90.48-80 would provoke follow-through to around 91.40-61 which should hold on first test. Above would extend gains towards the 92.31 high.

Please view the complete analysis in the attached PDF file.

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.