Type:
Bearish Drop
Key Levels:
Resistance: 108.94
Pivot: 103.92
Support: 95.905
Preferred Case:
On the H4, with price moving in a descending trend channel and RSI showing a descending trendline, we have a bearish bias that price will continue to drop from the pivot at 103.92 at the pullback support to the 1st support at the 95.905 at the swing low in line with the 61.8% fibonacci projection.
Alternative Scenario:
Alternatively, price may reverse off the pivot and rise to the 1st resistance at 108.94 at the overlap resistance in line with the 38.2% 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.