Bias: I look for 1.2367-05 to cap and for another decline back to 1.2240 & later below
Well, the bounce from 1.2208 was just about perfect and generated a sharp pullback but I don't think there's much further to go now. Anywhere between 1.2367 and 1.2405 I feel we shall see a cap and a reversal lower. Therefore watch for bearish trade set ups in this area. Once this begins it should move back to the 1.2320-40 area initially and then the 1.2295-05 pivot area before following through back to yesterday's lows. By tomorrow I feel this has potential to 1.2102 - max 1.2073.
Only directly above 1.2410 would imply a retest of the 1.2466 high. However, I still don't see this as moving much further. Note resistance at 1.2489 & 1.2504-27. Only if we begin to see this type of strength would I begin to look for a stronger follow-through higher with the 1.2670 swing high a potential target.
Medium Term Outlook:
23rd June: This is at risk of a morphing of the wave structure from immediately bullish to corrective. Initial support is at 1.2190-12 and later 1.2073-1.2121. Only back above 1.2380 & 1.2406 would raise the prospect of direct gains again.
Only below 1.2050-73 would reverse the larger bullish outlook...
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. (+145 pips)