Price:   93.20

Bias:    While 92.77 holds I feel the risk remains higher for 93.70-77 and later 94.26

Daily Outlook:

The 94.26 area still remains the intermediate target and I feel it should develop more directly but there is a mild risk that we see the correction recycle back to 92.77-80. More likely we should see the 93.27 peak break which should spur a rally through the 93.53 high and on to 93.70-77. Expect a pullback from there probably stalling around the 93.40-50 area. While this holds the next leg should be seen to the 94.26 target. Look for bearish trade set ups here for a correction lower.

If we are to see a second drop to 92.77-80 then a move below 93.00 would provoke follow-through. Then the 92.77-80 area appears to become critical. I still feel it will hold but if this proves wrong then a break here would revisit the 94.44 low at least. Take care this could cause a pullback. Below 92.44 would risk losses through the 92.20 corrective low and then I'd have to look for a recycling all the way back to the 90.84 corrective low.

Medium Term Outlook:

11th May:      The pace of the rally has slowed and this concerns. To retain a direct bullish stance we'll need a break back above 93.53 and 94.24-55 to maintain the upwards momentum for 95.68 at least.

Only below 88.00-13 would suggest we're going to see resumption of the monthly downtrend.

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. (+75 pips)