Prices have fallen towards $1,225 as we expected from our last analysis. This decline could very well be wave B of the corrective pattern we are currently in. So now we should expect an upward bounce as wave C towards $1,275. Short term resistance is found at $1,245 and then at $1,275. Short term support is found at $1,220 and then at $1,200.

We expect the upward bounce to try and reach the 50% Fibonacci retracement in order to complete the corrective pattern. However, we must also take into serious consideration the fact that prices have already retraced 38% and this could it for the entire correction. Holding above $1,215 will be an important bullish sign. Breaking below that level could bring in more weakness.

The daily chart continues to support bearish positions as trend remains down. The best scenario for bulls will be an upward bounce towards $1,275. I do not see anything better than this for the time being and that is why I focus on selling the upward bounce.