Bias: While 1.0977-83 caps I feel we should see a pullback to 1.0840-50 (max 1.0820) before higher again
Gains were persistent and in line with expectations to reach the 1.0953-85 area. I still see this - and more precisely the 1.0977 level) as providing a cap in the first part of the day. More likely we shall get a better buying opportunity around the 1.0840-50 area (max 1.0820) from where a push back above 1.0977-85 should be seen. Only a more direct break through 1.0977-85 would imply immediate gains through 1.1020 and up to the 1.1095 area. Take care there as this is the next larger resistance which can cause a slightly stronger correction.
16th June: Yesterday's very direct rally certainly gives a more bullish structure to price and while 1.0820-50 supports I still look for follow-through to 1.1095 initially and after a correction even further - possibly the 1.1265 area - though will update once we have finished the correction.
Well, the strength seen yesterday does seem to limit the downside to corrections only and I'm not sure these will be that deep. I do feel the 1.0977 area should cap early on today and generate a pullback that could well be quite choppy back below 1.0905 and to the 1.0840-50 area (allow for 1.0820.) However, while the structure remains bullish I feel this will be the most we see. Thus for any stronger bearish stance wait for a break of 1.0820 and only if seen would it generate a push down to 1.0780-00 at least. Next support is at the 1.0746 corrective low.
16th June: With yesterday's rally I feel we should place any bearish stance on hold. Only back below 1.0700-15 would undermine this rally now.
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