Price:   0.9016

Bias:    While 0.9070-80 caps there is still risk of losses

Daily Outlook:

The rally has been stronger than expected and should follow-through above 0.9030 and into the 0.9070-80 area. However, take care here as this appears to be critical. I feel it should hold and allow losses to develop. Back below 0.8985 would trigger follow-through to 0.8910-20 en route 0.8860 and 0.8804. Look for a correction from around this area. Later it should retest the 0.8736 low...

Only a break above 0.9080-90 would concern and probably imply that we have seen the full extent of the downside. If seen then look for follow-through above 0.9115 and 0.9143 en route 0.9143-67 initially but expect a correction from here. Next resistance is at 0.9224 & 0.9274...

Medium Term Outlook:

10th May:      I still have a preference for a retest closer to the 0.8574 corrective low and for this the 0.9070-80 area needs to cap. Thus watch this resistance carefully... While it holds we should see a retest close to the 0.8736 low and after a pullback to the 0.8578 area...

Only directly back above 0.9070-80 would raise the threat of a more direct recovery towards 0.9137 and 0.9274...

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 available on the Daily Forecast page of my web site in the Trader Package review. (+195 pips)

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