Bias: I expect further losses to 110.30-60 but then a reversal higher
The 115.23-58 resistance area held firm and has provoked losses as expected. While any pullback from this morning's 111.27 low remains below 112.25-50 we should see follow-through below 111.27 and into the 110.30-60 support area. Look for bullish trade set ups here. Only directly below 110.30 would risk follow-through to 109.45 and 108.31-62...
Only an earlier break back above 112.50 would provoke a reversal higher sooner and then look for the 113.90-00 pivot resistance to be tested initially. It should cause a pullback. Above there note resistance at 114.54, 115.00 and 115.24-48.
Medium Term Outlook:
19th May: Losses have developed well but I do feel that we while I am bearish in the larger picture a pullback from the 110.30-60 area is due first… Below identifies 109.45 and 108.31-62 at least... further out a decline closer to 100-105 is possible.
From the 110.30-60 area I look for a choppy pullback to around 116.25-75.
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. (+190 pips)