Type:
Bearish Reversal
Key Levels:
Resistance: 0.75372
Pivot: 0.74692
Support: 0.74258
Preferred Case:
Price is dropping towards the ascending trendline. We see the potential for a bearish reversal from pivot level of 0.74692 in line with 38.2% Fibonacci retracement and 61.8% Fibonacci projection towards the 1st support level of 0.73568 in line with 78.6% Fibonacci projection, 161.8% Fibonacci extension and 78.6% Fibonacci retracement. Our bearish bias is further supported by price being pushed down by Ichimoku cloud.
Alternative Scenario:
However, there is a probability that price might break through the 1st resistance level to rise up towards 2nd resistance level of 0.75372 in line with 61.8% Fibonacci retracement and 100% Fibonacci projection.
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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.