Bias: I'm growing more towards a reversal … but care needs to be taken around 88.93-06
I can't say with great conviction that the downside has been satisfied but there are some supporting factors such as the bullish divergence in my hourly RSI. Still divergences do need confirmation and I don't think this comes price-wise until we've cleared the 88.93-06 area. I am therefore setting quite defensive areas to watch for set ups and this is one of them. If this is exceeded I feel the chances of seeing a stronger follow-through are higher. However, we may well find that the rally becomes a little choppy. There is some mild resistance in the 89.47-63 area and one to watch out for around 89.97... Of course above here would signal a test of the 90.77 high.
9th December: I retain the larger targets on the upside but feel that we are more likely to see a period of sideways trading. The base should be around 87.10-14. Only a break above the 90.77 high should resurrect the targets at 91.16, 91.70 and 93.13.
Price didn't reach 87.10-14 and given this is a correction the extent of the pullback is always a bit unclear. I feel there has been enough and the wave structure does tend to support this except the move down from 88.69 wasn't the cleanest of moves (wave-wise) and while we've seen a recovery this morning it hasn't yet done enough to suggest this is anything more than a correction and possibly a complex one. Thus, until the 88.93-06 area breaks do be aware of the risk of one more dip lower. Below the 88.10 pivot support will undermine and take price back to the 86.36-66 lows. Below there is support around 86.95-87.10 and also 86.70. If seen I feel this would provide the final low.
9th December: The move higher appears to be developing in three waves with the first ending at 90.77. This should see support develop between 87.10-87.50. Therefore only look for extended losses below this area but even then we'll have to take care around 86.80 & 86.22.
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 and indicator conditions.