Type:
Bullish Bounce
Key Levels:
Resistance: 1.13865
Pivot: 1.12731
Support: 1.12359
Preferred Case:
With price close to our pivot level at 1.12731 which is in line with horizontal swing low support, 78.6% Fibonacci retracement level . We could potentially see a further rise from here towards 1st resistance at 1.13865, which coincides with 127.2% Fibonacci extension level and horizontal swing high resistance. This is further supported by how price is likely to bounce off the Stochastic support level .
Alternative Scenario:
Alternatively, we may see price break pivot structure and drop to 1st support at 1.12359, which coincides with horizontal swing low support .
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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.