The bounce from our proposed support zone (101.77) has proven to be choppy and has the hallmarks of a correction. The rally from the low has formed, and broken down from, a bear flag. This price action is supportive of the overriding downtrends and the rounded top pattern from December. In sum, current price action is threatening our preferred outlook for a final marginal rally…the highs may be in place. (240m) S/t, the bear flag projects a move to and through the 101.77 low with conservative projections ranging from 101.55-100.38. For today watch for a break of 102.50 to promote more weakness down to the lows. Key resistance has formed at 103.30/40. (hourly) Conviction: Medium Trade: Flat. Correction unfolding and price action threatening that high may be in place. Levels: Support – 102.50, 101.77/55, 100.38 Resistance – 103.30/40, 103.59, 103.90
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Nomura