Price:   1.0442

Bias:    Slightly mixed but feel more on the bearish side… but not sure this will decline too far…

Daily Outlook:

Losses stalled on Friday at the 1.0444 support but then extended to just above the 1.0404 support yesterday. I feel there is probably more room for losses today but I'm not convinced these will be strong. Below 1.0404-13 would see the decline extend to 1.0380 and then the stronger 1.0340-50 support. Watch for a bullish trade set up to develop. Only breach would maintain the bearish momentum for 1.0245-75 and max 1.0218...

Only an earlier break above the 1.0494-04 Fibonacci & price resistance would imply more direct gains to 1.0549 followed by 1.0582-94 and 1.0632… Also note the 1.0715 corrective high.

Medium Term Outlook:

1st June:      I'm still considering the possibility of a move all the way back to 1.0110 but still find this less likely. More likely I feel that we should see losses limited and bring price back into range - but not new highs yet....

Therefore, only back above 1.0505 followed by 1.0632 and 1.0715 corrective high would suggest gains again but I'd have to re-evaluate the structure….

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. (+110 pips)

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