Price:   110.71

Bias:    While 110.22-39 supports I remain cautiously bullish for 112.20-58 initially

Daily Outlook:

Price came within 5 pips of the week's low on Friday but recovered well to retest the 110.87 peak. I feel the upside is begging but we just have to be a little careful around the 110.87-12 resistance. Until that breaks there is risk of a dip to the 110.22-39 support. While this holds I will look for extension higher through 110.87-12 and then extend through 111.46-79 and 111.95 en route the 112.20-58 resistance - and I favor the higher end of the range. This should cause a correction.

Only if the 110.20 area breaks will I get a bit edgy and then see risk of a recycling back to the 109.52-57 lows and then the possibility of seeing a deeper correction to 109.30 & 108.83 may well develop.

Medium Term Outlook:

28th June:      Price has held above the 109.52 low and does seem bound for 112.20-58 and after a correction higher and potentially close to the 113.40 high.

Only directly below 110.20 followed by 109.52 would resurrect the possibility of seeing 108.83 and maybe then 108.06-39...

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. (+50 pips)