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