Bias: While there is early risk of seeing 1.2413-42 this should support for a move to around the 1.2670 high
The break above the 1.2571-87 resistance area has highlighted the larger bullish rally has resumed. The current pullback should hold above 1.2413-42 to generate follow-through back above the 1.2513 pivot resistance (which should cap any initial correction in early trading) and then the 1.2557 corrective high to extend gains back to the 1.2610 high and later reach the 1.2631-53 area minimum and at most 1.2670-92. I feel this will cap and cause a deep correction. Only above 1.2700 would maintain the bullish momentum for 1.2745, 1.2818 and 1.2883.
Only an earlier loss below 1.2400-10 would concern and generate losses back below the 1.2380 corrective low and down to the 1.2331-52 support area. Take care here. Also note pivot support at 1.2300-10.
Medium Term Outlook:
2nd July: What I thought would be a more complex correction turned out to be a much stronger rally but until 1.2590 breaks take care as the correction could easily recycle back to 1.2120-50. Above 1.2595 would maintain the upward trend and signal 1.2670 and 1.2880 en route the 1.3200-50 target.
Only back below 1.2073-1.2103 now would cause concern..
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)