Type:
Bearish Reversal
Key Levels:
Resistance: 115.718
Pivot: 115.225
Support: 114.283
Preferred Case:
On the H4 timeframe, price just broke the descending channel and is on bearish momentum and abiding to our descending trendline. We see the possibility of bearish continuation from our pivot at 115.225 in line with 38.2% Fibonacci retracement towards our 1st support at 114.283 in line with the horizontal swing low support. Our bearish bias is further supported by prices trading below our Ichimoku clouds.
Alternative Scenario:
Alternatively, price may break pivot structure and head for 1st resistance at 115.718 in line with the 61.8% Fibonacci retracement level.
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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.