Price: 1.5762

Bias: Mixed - waiting for breaks though upward momentum shows no sign of slowing

Daily Bullish:
Just as I thought it safe to call a correction the upside resumed and even rallied through the 1.5663 resistance and then proceeded to reach just a few pips above the 1.5789 upper resistance€¦ While these are what I had thought to be final target areas there is no sign of a slowing in momentum and thus we should be aware of the risk of direct follow-through above 1.5792-04 which would provoke extension to 1.5870 at least. Take care here as it may hold. However, I also see risk of follow-through to 1.5945-92 (max 1.6084.)

MT Bullish:
21st May: Within a blink of an eye the 1.5663 target was overwhelmed and this now generates resistance at 1.5792-04 (where we are now) and then at 1.5870 ahead of 1.5945-92 and 1.6084€¦ With momentum still strong this could occur directly...

Daily Bearish:
Given there is no bearish divergence in hourly or 4-hour charts we have to make sure that price confirms the downside if this is to occur. The 1.5792-04 area must cap. A break below 1.5730 would encourage and extend losses to the 1.5765-75 lower congestion area at least. Only below here would offer stronger losses - minimum 1.5602 and more likely the 1.5544-86 area before higher again...

MT Bearish:
21st May: Only below 1.5500 would now reverse the upward picture for a deeper correction. Even then there is congestion support around 1.5450.

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.