Bias: While 118.10 supports the bullish structure looks the stronger…
The break above 118.00-20 provided stronger gains than expected and these do look constructive. However, it will require the 118.00-10 area to remaining supporting and we have seen this test already this morning. A move back above 118.80 will assist and generate follow-through to the 119.97 high and probably 119.97 en route 120.63 at least. Take a little care here but I feel it should break for gains to head back to 121.06 minimum. Then note next resistance at 122.15-20 followed by 122.89-123.30.
6th February: The failure at 118.90 and the depth of the drop argues a more consolidation pattern. Thus only a break above 118.90 would alter this and cause a test of 120.63-121.06 at least.
Unless the 118.00 support breaks the structure remains bullish. Thus observe the current decline and only if we see breach of 118.00 should you look for losses through 117.40-50 towards 116.95 at least. Next support is seen at 116.40-50 and 115.70-80. Much below this would cause problems and a stronger follow-through required for 114.20 and 113.02.
6th February: The peak at 118.90 appears to be part of a larger triangle structure which should find a base above the 113.96 level. This will return price back higher into the range but the next larger move should then be lower to retest the 112.07 low...