Bias: I am more mixed here with resistance seen at 153.88 and support around 151.00-25
The 151.50-70 pivot support held well for gains to extend higher, although without great momentum, to reach 153.24 this morning. There is risk of bearish divergences developing so do take care since we may well be rising within a wedge pattern. While 152.50 (max 151.96) supports I still feel there is risk of seeing gains to 153.88. Take care there as this could see a correction lower. Only breach of 133.90 would extend the upside to 154.90-155.42. Again, I feel caution is advisable at these higher areas also. Note the next major resistance is at 155.94.
27th May: Yesterday's reversal from 149.55 has seen new highs which reached 152.35 this morning. I feel there is still probably more risk of gains with 153.88 and 154.90-155.42 the next major barriers.
I tend to feel that we should see gains reach the 153.88 area but take care and watch GBPUSD in case it drops quickly. I feel that this 153.88 area could cap for a move down to the rising wedge low which is currently around 151.00-25. However, only break of this support line would provoke a stronger reaction lower. If seen, look for losses to accelerate down through 150.05, 149.55 and then much lower to the 147.80-00 area.
27th May: The 151.52 high has been broken and only back below here would begin to undermine the bullish rally. Look for bearish reversal patterns around 154.90-155.42€¦ Below 149.50 would suggest the rally has completed.
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 now available on the Daily Forecast page of my web site.
I shall be presenting a seminar in Hong Kong on Saturday 27th June at the Excelsior Hotel in Causeway Bay. Please see http://www.earlthorn.com/ for details.