Type:
Bearish Breakout
Key Levels:
Resistance: 1.19183
Pivot: 1.1878
Support: 1.17651
Preferred Case:
On the H4, with prices moving below the ichimoku indicator and within the descending channel, we have a bearish bias that price will drop to our pivot at 1.1878 where the pullback support and 38.2% fibonacci retracement are. Once there is downside confirmation of price breaking pivot structure, we would expect bearish momentum to carry price to our 1st support at 1.17651 where the 61.8% fibonacci projection and 161.8% fibonacci extension are.
Alternative Scenario:
Alternatively, price could rise to 1st resistance at 1.19183 in line with the pullback resistance.
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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.