Type:
Bullish Bounce
Key Levels:
Resistance: 0.63269
Intermediate resistance: 0.62717
Pivot: 0.62048
Support: 0.61419
Preferred Case:
On the H4, with price breaking out of the descending trend channel, moving in a short term ascending support and moving above the ichimoku cloud, we have a bullish bias that price will rise from the pivot at 0.62048 at the overlap support. If price breaks the intermediary resistance at 0.62717 at the swing high in line with the 61.8% fibonacci retracement and 100% fibonacci projection, we will have upside confirmation that price will rise to the 1st resistance at 0.63269 at the swing high in line with the 78.6% fibonacci retracement.
Alternative Scenario:
Alternatively, price may break the support structure at the pivot and drop to the 1st support at 0.61419 at the pullback support.
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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.