Price:   1.3193

Bias:     I suspect a pullback higher to the 1.3312-35 area

Daily Outlook:

Yesterday's losses reached 1.3154. There's no clear signal of a reversal higher but I feel at this stage we need to be flexible. My preference is for direct gains on the assumption we shall see a sideways consolidation develop. This would mean that the upside should now develop directly and I suspect reach the 1.3312-35 area again. This should be observed for bearish trade set ups. In attempting to identify potential entry levels on the way up the two areas I feel could generate continuation patterns - or reactions at the very least - are between 1.3213 and 1.3235-45.

If there is any alternative to the preferred view it is possible to see a dip to the 1.3115 low area again but I don't think we'd see follow-through directly and may even mean a complete recycling of the move back to 1.3352… Below 1.3115 note potential support between 1.3059-80 but below there signals 1.2935-45...

Medium Term Outlook:

4th May:      If the sideways consolidation develop - and if anything this should be a triangle - then it may just resurrect the deeper 1.2806 target. Let's see how the next move develops but the two clear targets are still 1.2935-45 and the 1.2806 level...

Only above yesterday's high is going to see this rally strongly to 1.3520 followed by the 1.3675-91 highs....

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. (+80 pips)

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