Two days ago, we saw the final failure of an upside breakout attempt over several sessions of key resistance at US$1,705. There was an exuberant push out to US$1,818, but it was on falling momentum (a swing failure in RSI on the daily chart).
This factor, together with the choppy advance into the attempt, was the big clue that there wasn’t enough conviction or impulsive power to force a breach and then extend higher.
Typically, exuberance in a technically weak setup is capitulation and we can expect a fast move in the opposite direction. The US$1,705 level is important too, it has served as bottom support all the way back to 23 May.
Price is now moving impulsively lower in a clean five wave structure. The 26 July uptrend support line has just given way and been retested and failed again. For now taking this decline in steps the next downside level of interest is US$1,560, which marks the 2 August low and the fifth wave down.