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