Bias: While 0.8294-0.8325 caps I look for losses below 0.8131-41 and 0.8065 to reach 0.7981-20 before higher again
The 0.8361-96 resistance was tested again and held. This should now provoke a stronger push lower. The 0.8294-0.8325 area should now cap for losses below the 0.8200 low and on towards the 0.8131-41 area followed by the 0.8065-70 lows and the eventual target between 0.7981-0.8020. Look for a bullish trade set up in this lower support area as I feel a larger correction higher is due.
Only an earlier break above 0.8325 and 0.8344 would retest the 0.8388-96 resistance again. If this breaks then we'll see the larger correction higher develop more directly. This should move through the higher resistance areas with eventual targets in the 0.8550-90 area.
Medium Term Outlook:
27th May: I've stuck with the downside but I still see the 0.7981-0.8020 area (max 0.7951) as a strong candidate for a reversal higher above 0.8500… but in a correction only.
Only directly back above 0.8400 would reverse the bearish structure.
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. (+20 pips)