Overview

As the minor resistance at 118.37 is intact, further fall could still be seen. But price actions from 125.85 are still viewed as a sideways consolidation pattern. Thus, we expect the strong support from 116.13 to bring a rebound. Breaches above the mark of 118.37 will turn bias back to the upside for the 120.33 support that turned into resistance. Nevertheless, a sustained break of 116.13 will indicates that it is a deeper medium-term correction. At this point, we are viewing it as a sideways pattern and expect the strong support around 116.13 to contain the downside. However, a sustained break of 116.13 will indicate that the corrective fall from 125.85 would extend to the 38.2% retracement of 75.56 (low of 2011) to 125.85 at 106.63 and lower.

Daily Pivots: (S1) 116.88; (P) 117.16; (R1) 117.59