Bias: Mixed – waiting for breaks
Every time this looks as if it's going somewhere, it doesn't. Ideally I'd like this to correct lower more deeply but the structure of the decline looks a bit stretched in the very short term. It may well be that we're seeing a recycling of the correction from 0.87o6-0.8743 and thus take a good look at momentum when price approaches this area again and look for bearish trade set ups. A move down below the 0.8691 low would extend losses through 0.8665-80 and down to 0.8633 at least, possibly even 0.8595-05.
Only a break above 0.8760 would imply a move back to the 0.8775 high and probably further which would tend to imply a move back closer to the 0.8858 high.
Medium Term Outlook:
29th June: Watch the next moves, if this tops out at 0.8740-50 then we could easily see deeper losses again. Ideally I'd like to see a move down to 0.8537-60 at least , possibly 0.8470...
Above 0.87750-75 would see the 0.8858 high retested at a minimum...
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. (+10 pips)