Technical summary:
As we said yesterday, the closer volatility gets to the ideal bottom near 131.45 the greater it becomes and yesterday's sudden move higher to 134.69 describes this well. That said, we are still looking for more downside pressure towards an ideal target at 131.45 before a stronger rally takes place.
In the short term, we expect resistance at 134.69 to protect the upside for the next part of the decline towards 131.45. Only an unexpected break above resistance at 136.13 will indicate that a bottom is already in place.
Trading recommendation:
Our stop at 133.80 was hit for a nice profit. We will stand aside for now as the final part of the decline to 131.45 is expected to be very choppy and difficult to trade.
