Bias: I feel a pullback is due but while the 1.4305-36 support holds we are due to see further gains
The decline reached the 1.4262 target and just a few more pips and I feel this completed a full correction. This being the case we should see stronger gains. Right now I feel that a break below 1.4360 should allow a slightly deeper correction to 1.4336 at least and potentially as far as 1.4305-21. Look for bullish trade set ups anywhere in the 1.4305-36 area. A move back above the 1.4400-05 pivot resistance should retest the 1.4424-47 highs. It should cause a small pullback first but then follow-through. Take care also between 1.4464-88 as if this turns into a sideways consolidation then this area should cap. Breach would extend back to 1.4527.
Therefore, only below 1.4300 would risk a retest of yesterday's 1.4258 low and potentially the 1.4231 low. Take care here. Breach would risk follow-through to 1.4204 minimum and probably 1.4161-88 with a deeper support at 1.4118.
Medium Term Outlook:
26th May: The retest at 1.4258 and recovery is interesting and could even be interpreted as quite bullish. However, wait for break above 1.4488 & 1.4527 to raise the risk of seeing gains towards the barrier at 1.4672-1.4709 and 1.4809.
While those resistance levels hold there will still remain a potential bearish stucture that should imply losses below 1.40. First we'll see where the rally stalls.
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. (+235 pips)