- 4H and 1H: The flight to safety has benefited, but it has been in a recent correction. In the 4H chart we saw a correction after the market established a record high near 1250. That correction was support at the 1170 level by a SMA 200 in the 4H. What we are looking at now is a continuation of the bullish mode. The 4H chart also shows the market breaking above 61.8% retracement after consolidating a weeks ago. The end of last week saw the breakout attempt. This week, the market succeeded at breakout above the 1218.50 high from last week, but could not rally above 1230 and is in a correction.
- If the correction is complete, the RSI sets up a positive reversal suggesting a rally towars 1240. However, there is not resistance until the high near 1250, so that is the more sensible target.
- The 1H time-frame tracks the correction more closely. You see a projected ab=cd retracement pattern go to 1213, 1210 area. However, it appears that the previous resistance area at 1215 is holding up now as support.
- If this support holds, the near-term target is 1228.00, then 1250.00
Fan Yang Currency Analyst Commodity Trading Advisor