Price: 1.1095

Bias: While 1.1108 caps I will look for losses to 1.1018-45 else look for 1.1159-76 before lower

Daily Bullish:
Price declined close to expectations with losses down to 1.1085 which was followed by a bounce, but then a push down to 1.1069. There are two possible alternatives here€¦ There is resistance at 1.1108 which has held this morning already. While this caps then the implication is a drop to 1.1039-45 (max 1.1018) where I feel we should be looking for a reversal higher that should reach 1.1222. Any earlier break above 1.1108 would imply a return to 1.1159-76 which should cap for losses to the 1.1018-45 area.

MT Bullish:
18th May: The break above 1.1105-20 has almost reached 1.1290 and I feel this will be the maximum we see. Thus only a break above 1.1300 would imply a completely different scenario and should see gains extend to 1.1421 at least and above there to 1.1449-86...

Daily Bearish:
While losses broke below 1.1085 it has not been particularly weak. If this morning's 1.1108 corrective high holds then we should see a move below 1.1069 that will stall around 1.1039-45 (max 1.1018.) Only a break below 1.1010 would imply a retest at 1.0977. However, if we first get a rally above 1.1108 then it would imply a move back into the 1.1159-76 area which should provide a selling opportunity for losses to the 1.1018-45 area...

MT Bearish:
18th May: It seems the 1.0977 low was the end of this part of the decline but the 1.1290 resistance should be the most we see. I actually feel there is risk of a flattish correction that will last 2-3 days but beyond that I will be looking for losses to the 1.0630-60 target

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 now available on the Daily Forecast page of my web site.

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