Type:
Bullish Bounce
Key Levels:
Resistance: 0.72208
Pivot: 0.71126
Support: 0.70913
Preferred Case:
On the H4, price has broken out of the descending trendline resistance and reacting in an ascending channel, signifying bullish momentum. We can expect price to bounce from the pivot level in line with channel support, 78.2% Fibonacci retracement and 127.2% Fibonacci projection towards 1st Resistance in line with 78.6% Fibonacci projection and previous swing high. Our bullish bias is further supported by the stochastic indicator where the %D line is abiding to the ascending trendline support.
Alternative Scenario:
Alternatively, price could push further down towards 1st Support in line with 161.8% Fibonacci projectio
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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.