The current corrective movement (Pic. 1, C2) represents 70.7% of the previous correction. Additionally a pro increase candlestick formation has been forged; i.e. the piercing pattern (Pic. 1, formation above arrow).
An assurance to this thought would be breaking the 79.88 level. If broken I believe that in the short term the market should be headed towards 81.05 and 81.19.
What has to be underlined is that the market may rebound off the mentioned resistance level and deepen the correction. If this happens then I believe that the level of 77.35 should not be broken.
Omar Arnaout
Omar.arnaout@xtb.com