Bias: While 1.0515-40 supports I look for follow-through to 1.0677 and later to 1.0729-75
Yesterday's pullback was a little deeper than expected dropping 6 pips below the 1.0521 support. However, overall I remain positive here and it's more a matter of planning how this move will develop. This will not allow a break of the 1.0515-40 lows. The initial barrier on the way up is at the 1.0590-00 area. If this holds then we'll probably see further range trading above 1.0540 before finally breaking through to the 1.0642-52 area and probably the 1.0677 high. In urn this must break to carry price up into the 1.0729-1.0775 area. I expect a cap to develop here for stronger losses.
Only an earlier break below 1.0515-40 would imply a deeper correction with 1.0410-30 and 1.0368 as the supports to watch for.
Medium Term Outlook:
7th June: I am cautious about Friday's rush higher. I do feel there are more gains to be seen but I have some doubts these will break above 1.0745-76... If so then we'll see a reversal back into range.
Therefore, only back above 1.0780 would risk a move back to the 1.0851 high...
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. (+145 pips)