Price:   1.1353

Bias:    While 1.1227-76 supports I feel there is still room for gains through to 1.1542 at least and possibly 1.1666

Daily Outlook:

Yesterday's gains reached just short of the higher 1.1449 resistance from where we have seen a pullback. I remain more bullish and feel that any pullback should remain above the 1.1257-76 area. From there, or a direct break above the 1.1403 corrective high followed by the 1.1440 high I feel the greater risk remains higher for 1.1463 and 1.1542 at least. If I have any stronger preference I see the 1.1666 area as a target but I'm aware this is far more aggressive than the EURUSD target...

Only below 1.1227-59 would imply we are already seeing a deeper correction and in that case we should be watching the 1.1190 pivot support followed by 1.1170 and 1.1430-40… I don't really favor this as it seems a bit too low… Breach would suggest a much stronger bearish influence I feel... though the congestion area around the 1.1070 corrective low should contain price.

Medium Term Outlook:

18th May:      From what I can see the 1.1440 high is not the end of this part of the uptrend and while 1.1257-76 supports there is risk for 1.1542, 1.1603 and even the 1.1666 area is possible.

The only risk I see is direct losses which break below 1.1227-59 and then the 1.1160-90 area to see a recycling back to 1.0923.

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. (+0 pips)