is still in bull
momentum in the shorter and medium term. However, looking at the weekly chart, we can see we're fast approaching a key zone. This zone is at around the 1.1600 to 1.17250 handle, and is both a major supply zone
as well as the 61.8% of the big 09-11 down move. Therefore, we'd be looking for a longer term short at these levels. In this regard, it is also worth
mentioning that when we take a look at the overall price structure on the weekly, the bear
move was far more impulsive than the long corrective sequence of which we are currently in. Fundamentally, this trade may also coincide with a basing and shift higher in oil
prices, so that is also worth
mentioning as a cross market reference point for a trade of this nature.