| Resistance: | 1.0634 | 1.0665 | 1.0700 | 1.0743-56 |
| Support: | 1.0590 | 1.0563 | 1.0502-36 | 1.0475 |
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Bias: While 1.0661-68 caps I feel we should see price extend losses to 1.0502-36 and eventually to 1.0432
Daily Bullish
Yesterday's correction was much shallower than expected and stalled in the lower 1.0740-50 resistance. I can't say the downside has been particularly strong but I'd want a stronger signal to call price higher. The key area appears to be at 1.0661-68 and thus only a break above here would provide a stronger basis for follow-through to minor congestion around 1.0695-05 and then back to the 1.0743-56 area. If seen I feel it should cap. Note next resistance at 1.0820.
Medium Term Bullish
3rd June: Losses continue and focus on the 1.0370 area where I feel a bounce may be possible. Before that only a break back above 1.0756 would appear to provide a stronger indication of more immediate gains. Watch temporary resistance at 1.0820 and then the 1.0953 high.
Daily Bearish
With 1.0617 breaking it does seem to point to an eventual move to the 1.0370 low. I see resistance now at 1.0661-68 and while this caps I feel the stronger risk remains lower. Back below 1.0590 would prompt follow-through towards 1.0502-36 at least and while this should generate a shallow correction the overall risk remains lower for 1.0432 and 1.0370.
Medium Term Bearish
1st June: While the short term momentum picture is not really showing a reversal right now do take care at 1.0623. It could still cause a correction to the 1.0790-22 resistance. Overall if the 1.0623 level breaks then the stronger support area is back at the 1.0370-1.0432 supports and at most 1.0333.
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.
My apologies that due to some technical problems I am unable to provide a PDF file today….
