Daily Pivots: (S1) 114.04; (P) 114.71; (R1) 115.22; More…
Today’s sharp fall dragged 4 hour MACD below signal line and suggests that recovery from 112.56 is completed at 115.61. Intraday bias is turned neutral first. Below 112.56 will extend the corrective fall from 118.65. In that case, we’d expect strong support from 38.2% retracement of 98.97 to 118.65 at 111.13 to contain downside and bring rebound. On the upside, above 115.61 will target a test on 118.65 first. Break will resume whole rise from 98.97 and target 125.85 key resistance.
In the bigger picture, price actions from 125.85 high are seen as a corrective pattern. The impulsive structure of the rise from 98.97 suggests that the correction is completed and larger up trend is resuming. Decisive break of 125.85 will confirm and target 61.8% projection of 75.56 to 125.85 from 98.97 at 130.04 and then 135.20 long term resistance. Rejection from 125.85 and below will extend the consolidation with another falling leg before up trend resumption.
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