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