Type:
Bearish Continuation
Key Levels:
Resistance: 102.670
Pivot: 102.475
Support: 101.690
Preferred Case:
With price expected to reverse off the Ichimoku cloud , we have a bearish bias that price will drop to our 1st support at 101.690 in line with the swing low from our pivot at 102.475 in line with the horizontal overlap resistance and 50% Fibonacci retracement .
Alternative Scenario:
Alternatively, price may break pivot structure and head for 1st resistance at 102.670 in line with the overlap resistance and 61.8% Fibonacci retracement .
Fundamentals:
With the two 50-bps hikes in the US fed fund rate primarily priced in, profit-taking is likely to ensue on the greenback, especially on pairs where the central banks just shifted towards policy normalisation, such as the RBA and ECB. With that, we currently have a mixed to weak bearish bias.
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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.