Type:
Bullish Drop
Key Levels:
Resistance: 8.315
Pivot: 7.715
1st Support: 7.365
2nd Support: 5.360
Preferred Case:
On the H4, the price is showing a shoulder head pattern and below ichimoku cloud , if the pattern is confirmed, we would have a bearish bias that the price may drop from the pivot at 7.715, which is in line with the 50% fibonacci retracement and the neckline of the head shoulder pattern to the 1st support at 7.365, where the 78.6% fibonacci projection , 127.2% fibonacci extension are. If the 1st support is broken, the 2nd support could be at 5.360, which is in line with the swing low and the target price of the price pattern.
Alternative Scenario:
Alternatively, the price could rise to the 1st resistance at 8.315, which is in line with the 61.8% fibonacci retracement and 38.2% fibonacci retracement .
Fundamentals:
No major news.
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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.