Bias: While 88.23 (max 88.45) caps I look for a move down to 86.51-70 before a deeper correction higher
The downside was the more vulnerable but stalled not quite where I expected but does appear to clear up some uncertainties. This should see the 88.23 resistance cap (allow for 88.45) and trigger follow-through lower back to 0.8696 and then the 86.51-70 area. Look for bullish trade set ups here for a deeper correction. Only below 86.50 would maintain the downtrend more directly with 86.10 and 85.87 the next supports.
Only an earlier break above 88.50 will maintain the bullish momentum for 89.10-20 and then the 89.76 swing high.
Medium Term Outlook:
1st July: I remain bearish but the structure is quite ambiguous. However, overall I have doubts that we'll see anything above 89.40-76 and maximum 90.20-30. On the downside I see support around 87.22-59 & 86.42-48 en route what I feel is a likely retest of the 84.82 low.
To generate any stronger recovery we probably need a direct break above 89.75 and the 90.80-00 pivot resistance as a first step.
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. (+35 pips)