BIAS: A high has been seen and this could now get a bit messy…
Resistance: 134.46 134.87 135.10 135.50
Support: 133.90 133.60 133.14-30 132.98
MAIN ANALYSIS: Failure to move higher and the reversal below 134.53-74 provoked stronger losses and the end of the rally. I do feel that this is a correction, and we'll have to watch carefully to see what structure this will take. While 134.40-46 caps there is still risk of losses back to yesterday's 133.60 low and later down to the broad 132.98-30 area. If this patteren of development occurs then we should see a modest correction higher from the 132.98-30 area.
COUNTER ANALYSIS: A direct break above 134.50 would see gains to 134.55-87 at least. Note the 135.10 resistance, and then the 135.50 high.
Below 132.90 would risk losses to 132.60 and possibly 132.17.
MEDIUM TERM ANALYSIS:
24th October: Well, that wasn't expected, but actually I'm a little relieved, as I felt the rally was a bit too strong if it got any further. I still think there's more upside to come, but we have to see how the corrrection develops. At most there is the 132.17 support, but at this point it's difficult to judge where this may stall. If we see the follow-through to 132.98-133.30 today it should provoke a correction higher, but will then require a second decline. Thus, for now we need to observe today's reaction and then plan from there.