Confluence Analysis
Updated
1. 2 rejections of the descending trend line and a break of the trend line.
2. The price pulls back to the 0.70 level (This level more consistent than 0.618, which is overrated, because 0.7 is a masculine number)
3. Price breaks the trend at 0.50 level signify and end to the downtrend.
4. Price pulls back to the descending trend line and the ascending trend line forming the X/crossing (X marks the spot)
5. Resistance at the 0.70 level turns to support ( Double top M turns to Double bottom W, it failed to hold at the 0.5 so it comes down to the 0.70 zone)
6. My target is 0.65. Why? Because the previous support hasn't been retested as resistance. Also the yellow lines are weak, the price never breaks a previous high or low unless it breaks below the 100 level or above the 0 level.
7. I will wait for a reaction at the 0.5 level, and see what the price is showing me and trade accordingly.
2. The price pulls back to the 0.70 level (This level more consistent than 0.618, which is overrated, because 0.7 is a masculine number)
3. Price breaks the trend at 0.50 level signify and end to the downtrend.
4. Price pulls back to the descending trend line and the ascending trend line forming the X/crossing (X marks the spot)
5. Resistance at the 0.70 level turns to support ( Double top M turns to Double bottom W, it failed to hold at the 0.5 so it comes down to the 0.70 zone)
6. My target is 0.65. Why? Because the previous support hasn't been retested as resistance. Also the yellow lines are weak, the price never breaks a previous high or low unless it breaks below the 100 level or above the 0 level.
7. I will wait for a reaction at the 0.5 level, and see what the price is showing me and trade accordingly.
Note
Target done :)
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