Price:   91.37

Bias:    This still looks positive but needs to break above 91.65 to extend gains for 92.08 and possibly 92.58

Daily Outlook:

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….

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. (+55 pips)