Type:
Bullish Bounce
Key Levels:
Resistance: 101.787
Pivot: 100.926
Support: 100.336
Preferred Case:
On the H4, price recently broke the descending trend channel. With price moving above the ichimoku cloud, it supports our bullish bias that price will rise from the pivot at 100.926 in line with the overlap support and the 78.6% fibonacci projection and 61.8% fibonacci retracement, to the 1st resistance at 101.787 in line with the 100% fibonacci projection and 78.6% fibonacci retracement.
Alternative Scenario:
Price may break support structure at the pivot and drop to the 1st support level at 100.336 in line with the 50% fibonacci retracement and the 61.8% fibonacci projection.
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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.