Price:   112.32

Bias:    Ideally the 111.95-09 area should support for further gains

Daily Outlook:

As elsewhere, no new low and direct gains… I see temporary resistance at 113.14-22 but once this breaks I feel we'll see follow-through above 113.50-60 and to the 114.38 high at least but most likely to the 114.74-115.17 resistance area. I'd expect a correction from here. Note further resistance at 115.54 and then not until 116.70.

Only below 111.90 would concern for extension through 111.50 & 111.05 to the 110.40 corrective low. Below there is support at 110.12 and then the 109.20-55 area.

Medium Term Outlook:

28th May:      Gains did develop as expected - apart from the fact we didn't see a minor new low - and I see this progressing further but only in a correction. I feel we shall either top at at 115.54 or possibly 116.70 but judge momentum when these areas are reached.

Overall I still see this as a correction higher and once complete feel we are due a decline to 104.56 min, then 103.20 and probably a maximum of 101.41….

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. (+135 pips)