Type:
Bullish Bounce
Key Levels:
Resistance: 0.72544
Pivot: 0.71274
Support: 0.70988
Preferred Case:
Price broke out of the descending channel and now abiding to the ascending channel, signifying an overall bullish momentum. We can expect price to bounce from pivot level in line with 100% Fibonacci projection and 61.8% Fibonacci retracement towards 1st Resistance in line with 78.6% Fibonacci projection. Our bullish bias is further supported by the Ichimoku Cloud indicator where it is acting as a support.
Alternative Scenario:
Alternatively, price could push further down to 1st Support level in line with 127.2% Fibonacci projection and 78.6% Fibonacci retracement.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
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.