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