Daily Pivots: (S1) 111.94; (P) 112.58; (R1) 113.10; More…
The break of 112.21 minor support suggests short term topping at 113.17, on bearish divergence condition in 4 hour MACD. Intraday bias is turned to the downside for deeper pull back. But downside should be contained by 111.39 resistance turned support and bring rebound. Further rally is still expected. Break of 113.17 will resume the rise from 104.62 to 114.73 resistance next.
In the bigger picture, current development, with the solid break of medium term channel resistance from 118.65 (2016 high), affirm our view that corrective fall from there has completed with three waves down to 104.62. Decisive break of 114.73 resistance will likely resume whole rally from 98.97 (2016 low) to 100% projection of 98.97 to 118.65 from 104.62 at 124.30, which is reasonably close to 125.85 (2015 high). This will now be the preferred case as long as 119.36 support holds.
