In line with our forecast Wednesday’s downside rejection became more pronounced buying yesterday. This demand produced a 2nd up day in a row and a clear move through the 13/100 day mvg avg area. The highs were not held, as profit taking was attracted at overbought extremes. This setback reversed more than half of the original upside and has been extended in Asian trading. So although the market remains around the 13/100 day lines sentiment is assessed as negative.
Rallies are likely to find sellers near 1.1227 with potential on the downside to 1.1177, 1.1153 or even 1.1121. Only above 1.1258 is bullish.