Daily Pivots: (S1) 111.58; (P) 111.90; (R1) 112.26; More…
A temporary low is in place at 111.54 and intraday bias is turned neutral first. Some consolidation could be seen but another fall is expected as long as 112.85 resistance holds. Below 111.54 will target 108.81 low. Break there will extend the whole correction from 118.65 to 61.8% retracement of 98.97 to 118.65 at 106.48. Nonetheless, break of 112.85 will turn focus back to 114.49 resistance instead.
In the bigger picture, the corrective structure of the fall from 118.65 suggests that rise from 98.97 is not completed yet. Break of 118.65 will target a test on 125.85 high. At this point, it’s uncertain whether rise from 98.97 is resuming the long term up trend from 75.56, or it’s a leg in the consolidation from 125.85. Hence, we’ll be cautious on topping as it approaches 125.85. If fall from 118.65 extends lower, down side should be contained by 61.8% retracement of 98.97 to 118.65 at 106.48 and bring rebound.
