Bias: The downside risk remains - but take care around 131.58-71 and then 130.56-64
Losses were seen in line with yesterday's bias and I feel the risk is still lower. However, I'm not quite ready to accept this as a massive move lower… Watch the 131.58-71 area for signs of reversal. Already we are seeing potential for a bullish divergence in the hourly chart while 4-hour is close to oversold. If we do get the bounce from 131.58-71 then we should see a move back to the 132.43 area and potentially the 133.05 pivot area. It is breach here that would provide a slightly more bullish outlook for gains that should then move through 133.60 & 134.10 and back to around the 134.32 high.
18th November: For the moment the emphasis is lower and may well turn into a stronger decline. Thus we should wait for signs of reversal before looking for a stronger recovery. Back above 133.05 and 134.32 will be required.
The downside did follow-through yesterday and I feel that while 133.05-20 caps we should see the downside extend a little further today to the 131.58-71 area (max 131.37.) Take care here as I would expect a correction at the very least. Only breach would risk direct extension of the decline to below 130.98 and with the 130.56-64 area the most likely stalling point. The next support is not seen until 129.12-48.
18th November: The downside has begun to take a firmer look and we should now observe the 131.37-71 area followed by 130.56-64 for signs of a correction - but indeed, it would only be a correction before additional losses.
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