Price:   1.0449

Bias:    In spite of my doubts price has shown a solid rally and this could resume today

Daily Outlook:

I was too conservative yesterday and in fact the uptrend resumed directly. Indeed, I feel the correction is probably complete though be aware of the minor risk of a dip to 1.0374-02 again. More likely this should see another round of gains that should quickly move back to yesterday's 1.0536 high and then follow-through for 1.0587, 1.0611, 1.0651 and 1.0691 en route 1.0741-58 where a pullback is possible. Overall I feel this should reach the 1.0819 area.

Only a reversal below 1.0358-74 would undermine the bullish structure and cause a deeper pullback again… Then watch the 1.0296-20 support area followed by 1.0252 and 1.0211.

Medium Term Outlook:

20th May:      In fact the larger uptrend resumed directly and I feel this should soon reach the 1.0741 high again - possibly 1.0758 where a brief correction should develop before follow-through to the favored initial target at 1.0819. Look for a correction from here which should be followed by new highs.

Therefore, only below 1.0358 complicates matters once again and would probably imply some messy range trading.

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. (+0 pips)