Further downside possible, but looks short-lived while above 200MA and importantly 0.703x.
- A lot of noise from the region, with PBOC lifting the bid temporarily and clearing the way for the test of 0.703x. This is an important area structurally as those with a background in waves are tracking for the beginning of an impulsive wave 3 inside a major.
- Here looking to add bullish exposure between 0.723x and 0.703x, expecting 200MA to hold but a sharp spike is still open via inflation today...the cheaper the better if you ask me.
- Confidence in the view will increase above the (a) at 0.753x and indicate a strong base is forming. As always, start counter trend positions as a hedge, and then when it really starts working, swing for the home run.
