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.
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