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