Bias: While 132.49 supports I feel we should see one final rally above 133.55 and to the 134.14 target before reversing
The rally extended all the way to 3 pips below the 133.58 target. However, in the process it has developed in a manner that is more consistent with another (but final) push. This will require the 132.49 low seen this morning to hold and for a break above 133.04 to trigger gains back to yesterday's 133.55 high. This broad area should generate a minor pullback but eventually follow-through to the 134.03-14 target resistance. It is here where I feel the high will develop. Thus, any stronger bullish view will require a breach of 134.20 and if seen would maintain the bullish momentum for 134.60-83 at least. Next larger resistance is at the 135.36-66 peaks.
4th December: I feel price has shown its hand and the 134.03-14 area is my favored target. Only above would begin to threaten a move through to the 135.36-66 highs.
As long as I'm correct in expecting a move to 134.03-14 I feel this should be the high to cause a reversal lower. Thus watch out for a bearish divergence in hourly, 4-hour and 5 minute charts. Only an earlier break below this morning's 132.49 low would risk direct losses and if seen then imply follow-through to 132.10 and probably 131.79 minimum. Take care here as this could cause a correction. If this first decline is more aggressive then the 131.35 area is implied. Also note the corrective low at 131.06 which should hold on first test - though I feel the 131.35 level would provide this pullback. Below 131.06 are troughs around 130.00-20.
4th December: I favor a top around 134.14 and while this holds any attempt higher we should look for stronger losses again below 132.49 followed by 131.06 to approach the 129.05 low.
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.