Richard Perry
Independent Analyst
Whilst they are not back in control yet, the bulls are gradually winning the battle slowly but surely as the US dollar regains its lost ground. The rally that has been inspired by the renewed appetite for risk and the fallout from the FOMC meeting on Wednesday continues to leave a series of higher lows over the past couple of days. The move above resistance at 119.00 was another mini victory, but the real blow would be a move above 119.55. This is the 11th December high and marks the peak of the right hand shoulder of the big top pattern. A move above here would confirm that the pattern has been aborted and the prospect of a correction has been deferred once more. The fact that this was a bull market corrective pattern also suggests that this is a signal to change outlook to bullish once more. We are on the brink of the break now. The support of the latest high low is at 118.25. The next upside resistance above 119.55 comes in at 120 and then 121.
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