Last week rout took us to the level at 126.14 and it could be the level to watch again.
Before that we have the Nov 2012 through April trend line which comes in at 128.16. The low so far today 128.14. Ahead of Fridays lows we have support at 128.15/20 (which we’ve dipped into) then 127.44 then 126.20.
131.30/40 is the lid for any pushes back higher.
I just mentioned in the comments that I don’t like the fact that we are back here so quickly after leaving this area. It’s a sign of a very nervous market and one that’s keen to panic at any given opportunity.
Like I said Thursday and Friday, if you’re not sure then keep things tight and maybe look to trade the bigger picture by building small positions according to your strategy.