Bias: Mixed - waiting for breaks - probably with a more bearish bias
The downside failed yesterday and while a deeper corrective low was seen followed by a robust rally the pullback from there does not seem consistent with a directly bullish structure€¦ If we are to see this rally then we're going to need the 1.3440 and 1.3469 levels to break. Even then there is further resistance at 1.3509 and it is only above here that would confirm stronger gains. There could be a temporary halt at the 1.3581 high but overall the next resistance is at 1.3695 and the 1.3737 high.
8th May: We did see a break above 1.3436 and while it looked aggressive the pullback has been a bit deep. Thus we shall need a break above 1.3509 to confirm gains through 1.3581, 1.3695, 1.3774 and to the 1.3891 area.
The decline from the 1.3469 high has been pretty deep and doesn't seem to fit into a bullish structure. I also see resistance at 1.3509. While these resistances hold there does seem to be a slight bias towards the downside. A break below 1.3352 and 1.3320 should maintain losses for 1.3277-98 at least. Take care since while this support area holds we could see a sideways consolidation. Breach of 1.3277 would extend losses through the 1.3245 corrective low and probably to 1.3200-20 before higher again.
8th May: Yesterday's move to 1.3469 and reversal confuses things somewhat but still I remain with a bullish bias and only a break below 1.3177-00 now would begin to call for deeper losses.
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