Bias: The losses seen this morning point to follow-through within a larger sideways consolidation
The recovery stalled at 133.63 yesterday and it's been pretty well one-way traffic since. This morning's break of 131.25 is suggesting losses to 130.77 at least. Take care here - if there is a bullish trade set up then take it… Only an earlier break above 131.70 and 132.39-75 would offer any stronger push higher back towards yesterday's 133.63 high. Above there are the 134.35-55 peaks.
13th January: The depth of the decline surprised but I'm not quite ready to look for stronger losses. Watch the 130.90-25 area and as long as this holds we can move back towards the 134.36-55 highs at least. Once we have seen such a reaction I shall review.
This is looking more vulnerable now and loss of 131.19 followed by 130.77 will trigger a stronger decline. This would then extend through 130.35 & 129.67 to reach the 128.88-00 area. Take care here as this could hold and cause a correction. Breach would maintain the bearish momentum for 128.00.
13th January: I feel we should adjust the reversal level to 130.90 now… Only below extends losses to 128.88 at least.
For access to my daily support & resistance levels please see the Daily Forecast page of my web site
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 available on the Daily Forecast page of my web site along with a new report showing the prior day’s support & resistance levels.