Bias: I see early risk of seeing 90.37 (max 90.07) before another push higher that should eventually reach 92.22-52
There was no pullback on Friday but the rally didn't quite reach my resistance target either. I suspect therefore that we could see the pullback lower in the first half of the day with 90.07-37 that area to look for a buying opportunity. Only a direct break above the 91.31 high would threaten immediate follow-through - with the only risk being at 91.59-62. Thus above 91.59-62 would extend gains to 92.22 at least and I suspect closer to the 92.52 major corrective high. However, this should hold on the first attempt. Next resistance is at 93.15.
Price dipped from the 91.31 high and there does seem risk of follow-through below the 90.57 level reached on Friday. The ideal target is at 90.37 but there is also one other scenario that could imply a test of 90.07… However, with a minor swing low at 90.18 I still remain more in favor of the 90.37 support holding. Thus, take care in this broad area. Only a break below 90.00-07 would imply deeper losses. This would extend the downside to 89.77 and more likely the 89.30-50 congestion area where I'd expect a pullback. Note next support at 88.83-97 and 88.48.
16th October: I think it best to put a bearish stance on hold unless we get a break below 90.50 and then the 89.83-89 corrective lows. If this is seen then there may be more risk of a test of the 86.67-87.10 target…
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