Richard Perry
Independent Analyst
After two strongly negative days the bears look to have resumed control. However they are not having it entirely their own way was the support at $1.6020, which is seen best on the intraday hourly chart, is holding. However, interestingly, the bounce from the support has now started to find resistance around the previous support at $1.6080. This would suggest that rallies are being sold into now and that we can expect further pressure on the $1.6020 support in due course. Furthermore, if there is a breach of the support it would also complete a near term top pattern that would imply a target of the recent low at $1.5874. Looking back on the daily chart this all adds up too with the bears in control and momentum indicators rolling over once more (especially the Stochastics). It would need a move above resistance at $1.6130 to negate the selling pressure.
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