Type:
Bearish Reversal
Key Levels:
Resistance: 0.7289
Pivot: 0.72507
Support: 0.71815
Preferred Case:
Price is reacting in an ascending channel, signifying an overall bullish momentum. However, we can expect price to drop from the pivot level in line with 127.2% Fibonacci retracement and 127.2% Fibonacci projection towards 1st Support in line with 38.2% Fibonacci retracement. Our short-term bearish resistance is further supported by the stochastic indicator where the %K line is at the resistance level.
Alternative Scenario:
Alternatively, price could push higher up to 1st Resistance in line with 161.8% Fibonacci projection and 161.8% 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.