Type:
Bearish Drop
Key Levels:
Resistance: 8.500
Pivot: 8.125
Support: 7.680
Preferred Case:
On the H4, with the Stoch is below 20, and the price is above ascending trendline, as well as ischimoku cloud, we have a bullish bias that the price may rise from the pivot at 8.125, which is in line with the 78.6% fibonacci retracement to 1st resistance at 8.500, which is in line with the overlap resistance.
Alternative Scenario:
Alternatively, price could break pivot structure and drop to 1st support at 7.680, where the overlap support and 50% fibonacci retracement are.
Fundamentals:
No major news
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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.