The call for a corrective rally to 102.80/103.06 was realized via yesterday’s 102.89 high. The consolidation forming between 102-103 is showing the marks of a bear triangle. This consolidation is taking place right above the key 101.85/77 support shelf and a break would resolve a rounded top from early December. The next support zone below does not materialize until below 101. (daily) S/t, we expect resistance to remain at 102.89/103.06 as the range continues to shrink before the expected breakdown. If prices break the double bottom at 101.77 (the multi-year 101.50 level is also supportive) then the next retracement levels surface at 101/100.83. (hourly) Levels: Support – 101.85/77, 101.50, 101 Resistance – 102.89, 103.06, 103.89
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Nomura