stalled at the 110.23 resistance area
(August 16, 2016 high). Subsequent sharp reversal suggests bears are back in control, looking to fill the gap and test 101.00 (July 21, 2016 high). A decisive break below the latter would confirm near-term topping and expose the key YTD low at 89.47 (May 12, 2016). Beneath lies the long-term support around 85.00 (near 7.5-year rising trendline
support and 61.8% retracement
of the 55.01/134.54 upswing ( April
2013 higher low/April 2015 all time high)).
If the 101.00 support area
(near the 200 day moving average) manages to contain the weakness, an upside extension above the 110.23 resistance would signal channel/range breakout, turning the structure bullish
. Above 110.23 would open 123.82 next.