Price: 0.7680

Bias: While 0.7641-65 supports I look for a break above 0.7710 to extend to 0.7759 & 0.7802

Daily Bullish:
Gains seen as expected that have tested close to the 0.7710 high this morning. Indeed, while the 0.7641-65 area supports I feel we are likely to see price extend further higher later which on a break of 0.7710 should target the 0.7759 level at a minimum and I suspect as high as 0.7802. Take care there as it could stall the rally for a correction. Break of 0.7802 would provoke follow-through to the 0.7856-72 area at least.

MT Bullish:
13th May: Yesterday's gains were constructive and this should generate follow-through to 0.7802, 0.7856-72 and towards the eventual targets around 0.7916, 0.7949 and 0.8013.

Daily Bearish:
The upward structure remains in place and I retain a bullish stance but cannot ignore the daily, 4-hour and now (potential) hourly bearish divergences€¦ However, to confirm these divergences we require a break below the 0.7561 low at the very least€¦ Only while the 0.7710 area caps and generates a stronger decline would I begin to consider a more bearish view. A break below 0.7641 would concern - and may well imply a move down to the 0.7561 low...

MT Bearish:
12th May: Only a break back below 0.7506 would trigger a more bearish outlook for losses to 0.7412-35 and 0.7350. If this occurs I shall review the structure then.

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.