Bias: The move should be choppy but I look for a recovery to 1.0413-28 (max 1.0450) before lower again
Yesterday's rally stalled just below the 1.0365-83 resistance and a correction seen as expected. This has been deep but ideally it should now be complete. There is perhaps minor risk of seeing 1.0223 again and even 1.0190. However, I do not think that the 1.0359 high was a deep enough pullback and another hike is due. Ideally I'd like to see the 1.0270-75 pivot resistance broken. Once this occurs we should see follow-through to 1.0307 initially. Take care as this could see a small pullback. Once broken look for follow-through back to yesterday's high and finally to the 1.0412-28 resistance. I feel this will cap - look for bearish trade set ups.
Only direct loss of 1.0171-91 would suggest that yesterday's high was the final corrective high and this would provoke extension lower to the 1.0110 low at least. Below there note support at 1.0046 and 1.0009.
Medium Term Outlook:
14th June: In spite of the deeper pullback on Friday I still target the 1.0250 (max 1.0226) support but from there will expect a pullback to 1.0350-86 initially and then the 1.0450-86 resistance before the next leg lower that should retest and may marginally break the 1.0110 low.
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. (+40 pips)