Bias: It's still best to take a neutral view until a larger break is seen but I'm more inclined to be bullish now…
Yet another marginal new low yesterday but without any follow-through which has deepened the 4-hour bullish divergence with a daily cycle low due this week… The combination of these factors continues to push me towards the bullish side but until eventual break is seen I can't 100% rule out further minor breaches on the downside. Back above yesterday's 89.18 high would definitely contribute to a bullish stance but with the degree of volatility the break level is not clear. There is resistance then at 89.67 and above there at 90.44-60.
20th November: We can reduce the break point for the upside to the 89.53-70 area. Once this breaks we should see gains develop - probably quite slowly - back towards the major peaks at 90.60, 91.26 and 92.31. The major targets are at 92.89-04 but then not until 93.74-94.04.
Another marginal new low and sharp recovery - can this be repeated? Again, I can't rule it out but until the 88.00 low breaks I'm very cautious about the downside. I like the 88.57 low as it produces a target for a second rally at 92.89 which has been one of the prospective targets for some while. However, even a dip to the 88.35-45 area can't be rules out. Thus, I feel it is best to wait for a breach of 88.00 to signal losses to 87.41 and then 86.93-10.
16th November: I think I want to take a step back and suggest that we'll have to wait for a break of the 88.00-14 area to trigger follow-through to the 86.93-87.10 area initially and then the prospect of the 85.73 and 84.39 targets become possible.
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.