The break above $65 saw continued gains to the upper bearish channel. This boundary is another clear line in the sand for bulls and bears.
Yesterday’s close produced a Morning Star reversal pattern above the Monthly Pivot and $64 support. This paints a near-term bullish bias but we do remain within a bearish channel, which leaves potential for another cycle lower.
However a clear break above yesterday’s $67 high invalidates the bearish channel and assumes a continuation of the dominant bullish trend. The break of the channel would could also assume the end of an ABC correction from the 70.21 high.
We can use a break below the Daily Pivot to assume a resumption of the bearish channel, or a clear break above $67 for a break of the channel.
At time of writing I favour a bullish continuation pattern to occur above the daily pivot, however as we have US data out tonight we do risk sideways trading to occur leading up to it.