Price:   1.1307

Bias:    While 1.1319-22 caps the risk does still seem lower

Daily Outlook:

I was rather surprised with the direct losses and the only way I think I can fit this in is within a still bearish structure. However, this will require the 1.1319-22 resistance to cap. A break below the 1.1275-95 pivot support areas should extend losses through yesterday's 1.1250 low and then closer to 1.1209 and the favored target at 1.1180.

Thus, only a break above 1.1322 and then preferably the 1.1334-38 corrective peaks is going to alter the outlook for a deeper correction. Even then I'm not too sure we'll get much above 1.1365 and the stronger resistance at 1.1392-05. Also note potential resistance at 1.1425-46.

Medium Term Outlook:

17th June:      This has been more directly bearish than I had anticipated and has potential to 1.1180 soon. Overall there are retracement targets at 1.1068 and then the favored 1.0930 level. However, expect a pullback from 1.1180 first....

Only back above 1.1405-45 would cause a lot more problems and suggest potential extension to the 1.2672 corrective high at least.

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)

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