A rebound through the holiday season with another robust defence of support at 125-175 (from 125-21) has translated to a more bullish theme with the early 2015 surge (as we had anticipated) through 127-26/27 targets.
This leaves upside pressures intact for early January.
Short-term Outlook - Upside Risks:
- We still see the bullish threat to 128-03 next in early January.
- Above her aims through the 128-125 peak for 128-28/295.
- Overshoot risk is maybe back to the 129-285 cycle high later into January.
What Changes This? Below 126-13 eases bull pressures; through 125-295 signals a neutral tone, only shifting negative below 125-175.
- We see an upside bias through for 128-03, maybe even closer to 128-125.
- But below 127-185 opens risk down to 127-11, maybe 127-015, which we would look to try to hold.
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