Prices remain below the key 102.70/86 barrier and below the underside of the 2012/13 uptrend. This keeps the bearish tone intact and could set the stage for one more push lower before a continuation of the early Feb rally. We look for further weakness early this week with an eye towards support between 101.77-101.39; then a rally towards 103.75 can complete a larger a-b-c rally (daily) S/t, the initial rally to 102.70 is being digested by a 3-wave decline and a just completed 3-wave rally. This has the hallmarks of a flat correction and ideally needs one more 5-wave decline to complete the a-b-c pattern. Support today is 102.17 & 101.86; resistance is 102.68/83 making an expected range of 102.17/102.68. (hrly) Levels: Support – 102.17, 101.86, 101.67 Resistance – 102.68, 102.83, 103.75
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Nomura