Bias: I look for gains to extend to 1.1348 at least but this may stall the first recovery
Losses stalled between the two support levels identified at 1.1180 and 1.1216 and given the bullish divergence I feel we have seen the intermediate low and thus we are due a pullback higher. While 1.1250 supports we should see gains extend above 1.1300 to reach the 1.1348 area which I feel will provide a barrier for a correction. Any direct breach of 1.1348 would extend gains to 1.1369-83 at least and then we need note resistance at 1.1426-46 and 1.1482-00.
26th May: While we saw a marginally lower low than anticipated I feel that we should now see a correction higher that could reach as far as 1.1446 and probably 1.1482-00.
I feel the downside for now will be for corrections only. There is resistance at 1.1348 and this could cause a pullback towards the 1.1280-00 area but this may well hold. Thus only below 1.1280 and also 1.1250 would cause a move back towards the 1.1186 low. Any breach would trigger follow-through to 1.1126 but take care there. Also note support at 1.1060-99.
26th May: While I still feel the minimum target is at 1.1025 and probably lower I feel we may just get a better selling area around 1.1482-00.
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