Type:
Bearish Drop
Key Levels:
Resistance: 3.5785
Pivot: 3.4160
Support: 3.2760
Preferred Case:
On the H4, with price breaking the trendline and moving below ichimoku indicator, we have a bearish bias that the price will drop to the pivot at 3.4160 where the swing low support, 78.6% fibonacci projection and 161.8% fibonacci extension are. Once there is downside confirmation that price has broken pivot structure, we would expect bearish momentum to carry price to 1st support at 3.2760 where the pullback support and 78.6% fibonacci retracement are.
Alternative Scenario:
Alternatively, price could rise to 1st resistance at 3.5785 where the pullback resistance is.
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.