Bias: Cautiously I feel we have seen the low and should see gains
The range dramatically broke and extend losses to the 139.30-35 lows. Although I can't see anything to suggest a reversal I feel we should be aware of the risk of a push higher. Wait for break above 141.36 and if seen it should extend the gains to 141.87 and 142.08. Again, this higher resistance at 142.08 looks important if there is a direct test as it should then hold. If we see earlier corrections then it may not have the same power. Above 142.08 would extend gains to 142.47, 143.00-05 and then the stronger 143.45-55 pivot resistance which I feel would hold.
5th February: As long as the 139.30-35 support holds I feel we should be expecting a stronger recovery. Above 142.08 and the 143.45-55 pivot resistance should assist the recovery back to the 145.00-27 corrective high.
Only a break below 139.00-35 will cause me to get more directly bearish. Only if seen would I then expect losses to extend once again to 137.40-70 and potentially 136.84. However, this broad area should support for a correction.
5th February: Only below 139.00 would maintain the bearish momentum for 136.84-137.41 at least. If seen I shall review.
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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 in the Trader Package review.