The interesting fact about the recent rally is that it has been developing with the Average Directional Movement Index (ADX) signaling an almost range-trading market. This changed over the past two sessions as the ADX is currently pointing to a mildly bullish phase. In the meantime, the stochastic oscillator is trading in its overbought territory, but it is failing to record a higher high and thus raising the possibility for a bearish divergence.

If the bulls manage to break the key 93.63 level, they could then set their eyes on the April 20, 2022 high of 95.73. Even higher, the path looks clear until the September 13, 2022 high of 98.50.

On the other hand, the bears are desperately looking to put a stop to the current upleg. If they successfully defend the 93.63 area, they could attempt to stage a correction towards the 200-day simple moving average at 91.70. However, the most crucial test of their determination stands at the 90.22-90.62 area that is populated by the September 2017 high, the 38.2% Fibonacci retracement, and the 50- and 100-day SMAs.