Type:
Bullish Bounce
Key Levels:
Resistance: 0.72617
Pivot: 0.71696
Support: 0.71379
Preferred Case:
With price expected to bounce off the stochastics indicator, we have a bullish bias that price will rise to our 1st resistance at 0.72617 in line with the 50% Fibonacci retracement from our pivot of 0.71696 in line with existing Fibonacci confluence area with the -27.2% Fibonacci expansion, 161.8% Fibonacci extension, 78.6% Fibonacci retracement and the 100% Fibonacci projection level aligning in a single area.
Alternative Scenario:
Alternatively, price may break pivot structure and head for 1st support at 0.71379 where the horizontal swing low support is.
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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.