The trendless market continues as depicted by the still tightening RSI range. Last week’s bullish hammer reversal and follow through as RSI bounced off the 40 zone was a minor bear trap and dampened our bearish outlook. The wave count is not clear but the recent fall from 103.02 was a corrective, 3-wave affair and that leaves us waiting for another new low within this large wave-[4] correction. (daily) S/t, the latest retracement at 102 has contained upside and represents key resistance. Prices are testing the underside of Thursday’s upchannel and the top of a possible bull flag; all of this channel resistance aligns near 102. Support is the pivot lows at 101.73 for a tight 102.00/101.73 near-term range. (hourly) Conviction: Med Levels: Support – 101.73, 101.60, 101.40 Resistance – 102.00, 102.12, 102.36
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Nomura