The anticipated corrective pullback is underway, with prices currently finding support at the 99.85, (50%) retracement of the Nov-Jan rally.
A short-term bounce is unfolding, as oversold daily studies unwind, with focus turning to the 101.73 high of 19 January. However, any tests are expected to prove difficult sustain, as weekly readings continue to dominate.
In the coming weeks, further losses are looked for, as the January bear trend unfolds, with a break below 99.85 targeting the 99.43 low of 8 December. Beneath here are the 99.12 break level and 98.92 retracement, where prices need to stabilise to keep the broad 2016 rally intact.
A close beneath here, however, would turn sentiment cautious once again, and signal deeper reactions as investors reduce exposure.