Bias: I prefer a more bullish stance but we really need support to develop soon to trigger gains to 1.1284-05
The 1.0926-50 did hold well and cause a firm rally which has reached 1.1203 and ideally I'd like to see this extend higher today. For this to work I'd prefer that the 1.1136-50 area remains supportive and causes a push back above this morning's 1.1203 high. If seen then we should see gains extend to 1.1255 at least - and take care here as this could cause a correction. Next resistance is at 1.1284-05 where care is also required but the larger & more critical resistance is at the 1.1340-55 swing high. I certainly don't think this will break on first test.
5th June: While yesterday was a bit messy I feel the natural target is at 1.1355. On the way take care of resistance around 1.1142-59 and 1.1256.
I'm not too keen on the 1.1203 area capping and it does cause me some concern. However, if we're going to see a lower peak then we'll need to watch for breaks of key support. I feel the first of these is at 1.1136-50 and if this breaks then the risk will be back lower and down to the 1.1084 area at least. Thus, take care here. Only breach extends losses to 1.1020 and at most 1.0926-60.
4th June: I feel the low is now in place€¦ Thus only a break below 1.0868 and then the 1.0783 low would resurrect the possibility of seeing closer to 1.0700.
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 on Saturday 27th June at the Excelsior Hotel in Causeway Bay. Please see http://www.earlthorn.com/ for details.