Bias: I prefer a correction down to the 1.0448-78 area before another stronger rally
Well, I had wanted a rally by the end of the day and in the true spirit of this currency pair it rushed higher without much of a pause. We are due a pullback and ideally this should move down to 1.0470-78 minimum and preferably 1.0448. Look for bullish trade set ups in this area for the next rally which could be as strong as yesterday's. The only caution to note is the possibility that the correction could extend sideways before the rally.
Directly above 1.0576 & 1.0608 would push price up to 1.0677-83 and eventually 1.0753. Below 1.0440 would deepen the pullback below 1.0400-15 to 1.0365 with the 1.0320 below that.
Medium Term Outlook:
28th June: I am beginning to feel that we may be in a larger daily consolidation range but we appear to be in the middle of this which could generate some erratic corrective structures. The top side of the range may get as far as 1.0728-77.
Only a break back below 1.0275-97 directly would cause a deeper correction with 1.0175-95 the next intermediate target and then we may be talking new lows....
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. (+35 pips)