Bias: I'd prefer a correction to 110.60-83 before the next leg higher
Yesterday's rally was more direct than expected but stalled 6 pips above the 112.44 target. We have see a correction but I'd actually like to see this move a little deeper. To provoke this we shall need price to break below the 112.00-10 pivot support followed by the 111.80 low which should then extend the correction back to 111.31 and possibly the 110.60-83 support. Look for a bullish trade set up here. From this support - or a direct break above 112.50-75 I will look for the uptrend to extend to the 113.40-51 resistance. Take care there and watch for a bearish trade set up...
Only a break above 113.60 would concern and suggest the correction should extend towards 113.96-22 and potentially 114.51-80. Below 110.50 deepens the correction to 110.00 at least. If this breaks then we have probably seen the high and thus expect more sustained losses.
Medium Term Outlook:
2nd July: Cautiously it looks as if we've seen the low at 107.31 and this will imply gains to 110.47-87 initially and then followed by 112.20-46 and 113.40 again.
Only directly below 108.80 and 108.06 would imply a dip down to 106.31-73 at least..
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