A further advance Tuesday through 125.00, but then a notable decline for a bearish outside pattern to leave risk lower into midweek.
However, having pushed above the high from 2007 at 124.15 to a new 12 year high, we see this setback activity as corrective in nature and still see the May breakout rally intact into early June.
- We see a downside bias for 123.47/42; break here aims for 122.76.
- But above 124.50 opens risk up to 125.05.
Short/ Intermediate-term Outlook – Upside Risks:
- We see a positive tone with the bullish threat to 125.81, the 2002 peak.
- Above here targets 129.08 and 130.00.
What Changes This? Below 121.53 eases bull risks; through 120.64 signals a neutral tone, only shifting negative below 118.86.
Momentum: The 8-day RSI, short-term momentum is rising and has scope to go still higher this week.