Last week PA showed a daily close above weekly resistance area at 1.8375 level, followed by some bearish action this week. I am expecting the price to come down to meet the 1.794 daily support zone (pink box area) and bounce towards 1.875 monthly key level.
Downside activity is supported by the daily MA crossover and full body bearish candle yesterday. Price will probably stall around 1.794 and form a clear reversal candlestick from the monthly key level of 1.8000, we would have the confirmation of a significant lower high and continue potential new leg to the upside.
If we place a fibonacci tool on the chart we can see the fib ABCD completion from last week and new high on monthly key level would give the completion of the second ABCD leg.
Downside activity is supported by the daily MA crossover and full body bearish candle yesterday. Price will probably stall around 1.794 and form a clear reversal candlestick from the monthly key level of 1.8000, we would have the confirmation of a significant lower high and continue potential new leg to the upside.
If we place a fibonacci tool on the chart we can see the fib ABCD completion from last week and new high on monthly key level would give the completion of the second ABCD leg.
Trade active
Looking back at the initial analysis I see that my entry point at 1.7940 was hit with absolute precision. Reversal from the daily resistance zone and weekly close above 1.8000 level is a great indicator of potential bullish movement for the upcoming week. If price can maintain its pace and close above 1.81000 then I am looking for a bullish movement towards weekly resistance level at 1.8375. Potentially we could see the price form a new higher high and take out the monthly key level at 1.8750 level which would complete the fibonacci ABCD as well.
Lets see how the levels hold and if price can keep up its pace.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.