Bias: While 1.4685-03 supports there is a small risk of new highs but overall I feel a correction lower is due
I was completely wrong yesterday with the degree of strength seen not really anticipated. However, I don't think this will maintain its strength but I am aware of the small risk of one more high. For this the 1.4685-03 area must support on any early dip. If then we see a break above 1.1772 & yesterday's 1.4808 high then be aware of the chance that we'll see the rally extend to the 1.4831-69 area. I think this will hold so watch for bearish trade set ups in this area. Only above 1.4870-84 would risk direct strength to 1.4963 and above there note the 1.5049 corrective high.
From 1.4831-69 or a direct break below 1.4680 we should see a stronger reversal develop. If this occurs directly then there is a minor risk of seeing a reaction around 1.4660. However, overall the downside can then extend to the 1.4610-15 pivot support which should be strong enough to cause a reaction. Below is the 1.4570 corrective low which should hold on first test.
Medium Term Outlook:
15th June: Although we have seen a stronger reaction higher than expected I can't get directly bullish beyond 1.4831-69. Either from there or directly I think we should see a deeper correction that may even have potential back to the 1.4346 low - although it seems a bit much. Note support at 1.4570-10 and 1.4440...
Only directly above 1.4870-84 would imply direct gains extending to 1.4963, 1.5049 and potentially 1.5090...
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. (+70 pips)