Bias: There seems to be early risk of gains but I'm not sure whether these will reach 1.4805-15
Yesterday's gains reached 1.4769 only from where we had quite a decent decline. Today has begun with a bullish outlook and I'm in two minds about whether this will reach 1.4805-15 as originally expected. I do feel that we should be looking to sell into rallied so look for bearish trade set ups anywhere above 1.4737... Clearly, if 1.4769 breaks then the ideal 1.4809 target will be resurrected. Thus, be aware of potential reversal patterns/signals..
On the downside which I feel has become more vulnerable a break back below the 1.4652 pivot support would begin to threaten the 1.4618 low… direct breach would open stronger losses through to yesterday's 1.4553 low (a pivot support) and once this breaks then the next leg should be stronger and probably reach the 1.4442-60 area which should cause a correction. Keep in mind the 1.4410-15 lows also...
Medium Term Outlook:
2nd June: The deeper 1.4809 retracement target appears to be possible now but take care as this could provide the high. Only above would extend to 1.4839-77 at least while above there could top the 1.50 area.
Watch for bearish trade set ups at 1.4805-15... below 1.4610 would signal losses again...
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. (+130 pips)