A resilient tone through Tuesday with a base forming, with the Friday plunge lower holding above key supports from March at 1.2407/06 and stronger foundations below from February in the 1.2385/61/52 chart support area.
We see a rebound bias this week, into the broader range into early April, to maintain bigger picture upside pressures from the new cycle high posted in mid-March.
A deeper correction Thursday and unexpected, back from 1.2698 to push through the trend line support from late 2014, but hold above a chart prop at 1.2429 (this week's low), above the neckline support now at 1.2385, the 1.2352 Februarysetback low and the January chart support at 1.2313.
However, we look for this broad support area to hold for a rebound back higher and for a bullish theme to again come through.
A surge higher Tuesday to reinforce our bull view after cautious digestion activity to start the week, which held above the trend line support, now 1.1965 to provide a strong base.
This has reinforced the prior break through a key impulse low from 2009 at 1.1981 and the psychological/ option target at 1.2000 and the previous surge above the 61.8% retrace of the entire 2009-11 sell off at 1.1655 and a key weekly failure peak from 2009 at 1.1727.