Price:   1.1652

Bias:    Overall this should now reach 1.1780-90 but there could be some early consolidation above 1.1587-17

Daily Outlook:

Losses stalled just above the higher 1.1418 support and from there we have seen scrappy upward progress. I can't say the structure is too clear but overall I see gains developing. During this process the 1.1587-1.1617 area should be the deepest we see. Early resistance is at 1.1689 followed by 1.1725 and I suspect some rather choppy trading around here and a pullback at come point that should ideally remain above 1.1617 but allow for 1.1587. At the end of this the eventual target is at 1.1780-90 at least. If this breaks then the next target is all the way up at 1.1890-95.

Only a break below 1.1587 would concern and suggest slippage back to 1.1533 at least. If this breaks then it would appear to suggest a retest below 1.1495-00 and back close to Friday's 1.1426 low.

Medium Term Outlook:

7th June:      The deeper pullback was seen on Friday and this should lead to a test of 1.1780-90 which is my favored target before a deeper correction. Also note the 1.1890-95 resistance.

From these areas I'll look for a pullback to around the 1.1100-50 area.

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. (+95 pips)