The Daily Forecaster

PLEASE look at the attached PDF file and read the guide on my website to using this analysis otherwise you will miss a great deal....

Bias:               Mixed - waiting for breaks though upward momentum shows no sign of slowing

Daily Bullish

Price declined close to expectations with losses down to 1.1085 which was followed by a bounce, but then a  push down to 1.1069. There are two possible alternatives here… There is resistance at 1.1108 which has held this morning already. While this caps then the implication is a drop to 1.1039-45 (max 1.1018) where I feel we should be looking for a reversal higher that should reach 1.1222. Any earlier break above 1.1108 would imply a return to 1.1159-76 which should cap for losses to the 1.1018-45 area.

Medium Term Bullish
21st May:  Within a blink of an eye the 1.5663 target was overwhelmed and this now generates resistance at 1.5792-04 (where we are now) and then at 1.5870 ahead of 1.5945-92 and 1.6084… With momentum still strong this could occur directly…

Daily Bearish

Given there is no bearish divergence in hourly or 4-hour charts we have to make sure that price confirms the downside if this is to occur. The 1.5792-04 area must cap. A break below 1.5730 would encourage and extend losses to the 1.5765-75 lower congestion area at least. Only below here would offer stronger losses - minimum 1.5602 and more likely the 1.5544-86 area before higher again...

Medium Term Bearish
21st May:  Only below 1.5500 would now reverse the upward picture for a deeper correction. Even then there is congestion support around 1.5450.

I shall be presenting a seminar in Hong Kong on Saturday 27th June at the Excelsior Hotel in Causeway Bay. Please see http://www.earlthorn.com/ for details.

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 now available on the Daily Forecast page of my web site

•  The Brief Daily Forecaster