Type:
Bearish Breakout
Key Levels:
Resistance: 139.383
Pivot: 137.738
Support: 136.728
Preferred Case:
On the H4, with price reversing off stochastic resistance, we have a bearish bias that price will drop to our pivot at 137.738 where the pullback support, 78.6% fibonacci projection and 23.6% fibonacci retracement. Once there is downside confirmation of price breaking pivot structure, we would expect bearish momentum to carry price to 1st support at 136.728 in line with overlap support and 38.2% fibonacci retracement.
Alternative Scenario:
Alternatively, price could rise to 1st resistance at 139.383 where the swing high resistance is.
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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.