Richard Perry
Independent Analyst
The pull of dollar strength is also being seen across Cable which has fallen away in the past 24 hours and this is beginning to see the downside pressure mount. The Stochastics are the most sensitive of the momentum indicators I use and with Cable completing a second straight bearish candle the momentum is gathering to the downside. A 3 week low on the Stochastics suggests the potential for a test of the recent reaction low at $1.5465 is growing. I spoke yesterday about the growing importance of the 50% Fibonacci retracement of $1.5188/$1.5928 at $1.5558 which was providing a consistent level of support. This has been breached decisively for the first time in just over a week and could be a key near term development. Watch now for the hourly RSI breaking below 30, as if this happens then it would be the first time in over 3 weeks this would have happened and would be a signal that the bears are gaining control. For now though the support at $1.5525 is holding and the outlook is not decisively determined yet. However, the sellers are mounting. Resistance initially comes in at $1.5570 and then $1.5633.
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