Price:   112.25

Bias:    I'd prefer a correction to 110.60-83 before the next leg higher

Daily Outlook:

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..

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. (+40 pips)