Type:
Bearish Pullback
Key Levels:
Resistance: 5.461
Pivot: 5.229
Support: 4.7
Preferred Case:
Prices are abiding to our daily descending trendline resistance. We see the potential for short pullback from our Pivot at 5.229 in line 78.6% Fibonacci retracement towards our 1st support at 4.7 in line with 38.2% Fibonacci extension. Our bearish bias is further supported prices trading above our Ichimoku clouds and RSI being portraying bearish divergence.
Alternative Scenario:
If prices were to climb higher, they can potentially rise towards our 1st resistance at 5.461 which is in line with 61.8% Fibonacci projection.
Fundamentals:
Warmer weather conditions in Western U.S., coupled with comments that diversifying European Union energy supplies may not happen in the near term and that Germany has no current plans to halt Russian energy imports might mean a short pullback on the commodity. However, with the crisis still in play, we would exercise caution when trading.
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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.