Type:
Bearish Drop
Key Levels:
Resistance: 1.01020
Pivot: 0.99945
Support: 0.99945
Preferred Case:
On the H4, with the price moving below the ichimoku cloud , we have a bearish bias that the price may drop from the pivot at 0.99945, where the 38.2% fibonacci retracement are to the 1st support at V, where the 61.8% fibonacci projection and swing lows are.
Alternative Scenario:
Alternatively, price could rise to 1st resistance at 1.01020, which in line with swing high and 38.2% fibonacci retracement .
Fundamentals:
Spanish Flash CPI y/y is out today, showing 10.4%, which is lower than the expectation and previous. Additionally, German Prelim CPI m/m will be out today, the expectation is lower than the previous. Therefore, we would hold a bearish bias of the EURO FX future
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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.