Bias: While 1.2062-75 supports I look for continued gains above 1.2147 and to 1.2240-45 & possibly 1.2266-95
Break above 1.1980-90 and then the push through 1.2072-01 has indicated that a major low is in place. This should see further gains towards the 1.2266-95 area at least. For this to occur the 1.2062-75 area should support. Therefore look for bullish trade set ups around here. With this support holding it should cause follow-through to 1.2167 at least. Take just a little care here as this is an alternative early target (for a correction) though I feel the greater risk is for gains to push directly above for 1.2240-45 minimum and probably the 1.2266-95 area. Above here take care and watch for bearish trade set ups. Price should not break above 1.2353.
Only an earlier break below 1.2060 would cause a deeper correction to around 1.2024 minimum and if this breaks then back to the 1.1956 corrective low.
Medium Term Outlook:
11th June: Frustrating but it seems as if the 1.1877 low was the end of the downside. This should now trigger gains to the 1.2266-95 area minimum and maximum 1.2353. This should be followed by a correction before the next leg higher. Overall the target for this correction is 1.3200-50.
Below 1.1956 would open up a retest of 1.1877... While I can't see how it would fit in, we should then be looking at 1.1712 and 1.1640.
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. (+55 pips)