Type:
Bearish Drop
Key Levels:
Resistance: 0.7180
Pivot: 0.7121
Support: 0.6975
Preferred Case:
Price is abiding to the descending channel, signifying an overall bearish momentum. We can expect price to drop from pivot level in line with 61.8% Fibonacci retracement and 100% Fibonacii projection towards 1st Support in line with previous swing low and 61.8% Fibonacci projection. Our bearish bias 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 127.2% Fibonacci projection and 78.6% Fibonacci retracement.
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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.