Bias: While 1.1350 supports I feel this rally can challenge the 1.1431-48 area - maybe even 1.1481
Friday's gains didn't manage to break out of the range seen in the last few days of last week. However, the start today has seen breach and thus we should now see stronger gains. However, I am a little mixed on what we are seeing since the structure appears more bullish than previously expected. In this current move I see potential to the 1.1431-48 area and possibly 1.1481.I feel there is a risk of a correction from here. Thus any stronger bullish stance will require a move above 1.1481 and if seen this should extend gains through to the next resistance at 1.1523-65. Also take care here - probably this will be more than enough for today. However, note next resistance at 1.1638.
18th June: The bullish move has been more direct than expected and while 1.1200-21 holds we can still see the move continue through 1.1424-48 and to the larger targets between 1.1490 and 1.1554. This should see a temporary top.
I feel the upside will be dominant today and given I feel the structure appears more bullish than expected I'd be cautious about the downside today. However, do watch the 1.1448-81 area as this does seem to hold risk of a short term cap and potential correction. Any earlier pullback sees support around 1.1350 (allow for 1.1330) and only below here would undermine the bullish structure. If seen then a move back to the 1.1232-50 lows is possible. Also note support at 1.1200 - breach would extend losses. Next support is then seen at 1.1143-78.
22nd June: It seems as if we shall see the correction recycle all the way to 135.36-71 and from there expect stronger Only below 1.1200 would concern and probably extend losses to around 1.10€¦.
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 now available on the Daily Forecast page of my web site.
I shall be presenting a seminar in Hong Kong this coming Saturday 27th June at the Excelsior Hotel in Causeway Bay. Please see http://www.earlthorn.com/ for details.