Price:   1.1063

Bias:    The 1.1067-84 target has just held… now watch for the next move…

Daily Outlook:

Since the General Outlook was written we have achieved target in the 1.1067-84 area. We have seen a reaction but insufficient to confirm a reversal. As long as this resistance holds the first sign of a reversal will be a break below the 1.1025-40 area. Once seen that would extend losses to around 1.0980. However, expect a pullback from there. Below 1.0975 would cause a much more sustainable decline that should eventually reach close to the 1.0840 corrective low.

However, as nice as it is to have my target reached the underlying momentum conditions mean that confidence is not that strong until supporting evidence is seen. Until then any break above 1.1085 would extend gains through to 1.1118 and maybe the 1.1151-89 area. For the moment I think this will hold. Next resistance is not until 1.1280...

Medium Term Outlook:

3rd May:      3rd May: No change to the view - I think we've seen the key low at 1.0730 and this should maintain the upside (with a small risk of an initial sideways consolidation) before rallying to 1.0985 at least and probably the daily pivot high at 1.1021 followed by the 1.1067 projection target.

Only below 1.0730 risks a deeper reversal - key supports first at 1.0700 and then 1.0501.....

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. (+110 pips)

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