Price:   109.25

Bias:    I suspect the range trading should continue a while longer before losses develop

Daily Outlook:

I continue to remain basically bearish but for the moment still see range trading potentially in the 108.60-109.80-00 range. Once complete we should see losses below 108.06-32 that should extend through 107.53, 107.20 and 106.25-54 to reach the ideal target around 104.40-60. Cautiously I feel that will be the end and should provoke a larger reversal higher.

Only an earlier break above 110.03-30 would confuse matters and extend gains to 110.71-88 initially and potentially back up to 111.94-112.10.

Medium Term Outlook:

8th June:      The correction we are seeing began at a higher support than expected. It raises some alternatives but overall while 110.71 caps I still loook for losses overall towards 106.25-54, 105.66, 105.11 and ideally the 104.40-60 area.

Only back above 110.70-00 would raise the chance of a second recovery back to the 114.13 high...

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. (+0 pips)