Type:
Bearish Breakout
Key Levels:
Resistance: 0.9737
Pivot: 0.96575
Support: 0.95793
Preferred Case:
On the H4, with price moving within the descending channel and below the ichimoku indicator, we have a bearish bias that price will drop to our pivot at 0.96575 where the swing low support and 61.8% fibonacci retracement are. Once there is downside confirmation of price breaking pivot structure, we would expect bearish momentum to carry price to 1st support at 0.95793 in line with pullback support and 78.6% fibonacci retracement.
Alternative Scenario:
Alternatively, price may break pivot structure and head for 1st resistance at 0.9737 where pullback resistance and 38.2% fibonacci retracement are.
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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.