Type:
Bearish Reversal
Key Levels:
Resistance: 0.7289
Pivot: 0.72511
Support: 0.71808
Preferred Case:
Price is reacting in an ascending channel, signifying bullish momentum. However, price is currently at a resistance, we can expect price to drop from 1st Resistance in line with 127.2% Fibonacci projection and 127.2% Fibonacci Extension towards 1st Support in line with 38.2% Fibonacci retracement. Our short-term bearish bias is further supported by the stochastic indicator where the %K line is at the resistance level.
Alternative Scenario:
Alternatively, price could push higher to 1st Resistance in line with 161.8% Fibonacci projection and 161.8% Fibonacci retracement.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.