Price:   0.8773

Bias:    While 0.8751 supports we could well see a rally to 0.8865 and then a further correction

Daily Outlook:

Friday's rally reached the right sort of target but today's gap higher is now pointing to a far more bullish structure. This morning's pullback to 0.8751 should be enough and from here look for a rally back to 0.8821 and then to the 0.8865 resistance where I look for a further correction. Look for bearish trade set ups there. Only direct follow-through above 0.8865-70 would extend the rally to 0.8933-76.

Therefore, only a break back below 0.8751 would cause a deeper pullback but then face pivot support at 0.8700-10. also note support at 0.8650-60 and 0.8600-30.

Medium Term Outlook:

21st June:      This has pushed directly above resistance areas that I had expected to hold and therefore provides a stronger bullish outlook. Next barriers are at 0.8865 and then 0.8933-76. This could eventually reach 0.9065-92.

Only below 0.8700-10 would concern and suggest a more erratic rally..

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. (+60 pips)