Richard Perry
Independent Analyst
I spoke yesterday about the “Morning Doji Star” candlestick 3 day bullish reversal and yesterday’s continued recovery backed up that assertion. Monday’s gap lower that I still believe could have been an exhaustion gap still remains very slightly open at $1.6282, despite an overnight rebound to $1.6277. However this is a barrier to gains as this coincides with not one but two different Fibonacci retracements. The 38.2% Fib of the $1.6615/$1.6050 is at $1.6277 and there is also the 38.2% Fib of the huge bull run from $1.4812/$1.7191 which comes in at $1.6280. This would suggest that if there was an upside break above $1.6282 which would fill the gap then the bulls would certainly be backing this recovery and open the next upside target at $1.6350. The bulls need to hold above $1.6180 to sustain the recovery momentum.
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