Bias: This still looks positive but needs to break above 91.65 to extend gains for 92.08 and possibly 92.58
Yesterday's pullback was a little deeper than expected but can still fit into a bullish structure. However, to avoid extension of a possible sideways move we really need a break above both yesterday's 91.44 high and the 91.60 high. As long as we see these then we should see progress to the 92.08 target at least. Watch momentum carefully - if it is still strong then possibly the higher 92.58 projection can be attained. Then note the 92.95-05 pivot resistance and the 93.50-70 peaks.
If price doesn't fulfill the bullish preference then we could see extension of the sideways consolidation or a deeper correction lower. Back below 90.98 & 91.15 would open the risk of a retest at the 90.53-77 area. Breach would extend losses through 89.97 and to the 89.55-79 area. This should cause a correction. Below extends losses to the 88.97 low.
Medium Term Outlook:
2nd June: If we see gains now, given yesterday's moves we should not only consider the 92.08 projection but also 92.58. Overall, if seen it should be positive and after a correction should extend to the 93.50-70 area at least and if the higher 92.58 projection is reached perhaps it will be possible to revisit 94.98...
Below 90.50 followed by 89.80 and 88.97 risks extension to 87.50-73 and 87.04 at least... then I shall review….
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