Overview
According to the H4 chart, we stay cautious about strong support from 126.09 and a possible rebound. A break of the 129.07 support turned into resistance will turn bias to the upside for 134.58 resistance. However, a sustained break of 126.09 will carry larger bearish implications. Price actions from the 149.76 medium-term top is viewed as development of a corrective pattern. At this point, as long as 126.09 support holds, we expect a sideways pattern between 126.09 and 149.76 in the medium term to be followed by an upside breakout at a later stage. However, a decisive break of 126.09 will raise some question over this outlook and would bring deeper fall at least to 61.8% retracement at 115.36.
Daily Pivots: (S1) 126.70; (P) 127.44; (R1) 128.73
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