USD/RUPEE FACEOFF in a rounding top with momentum divergence
Points in favor of the bears...
1. A perfect rounding top in formation
2.Rsi divergence at the top
3.A bearish ABCD harmonic
4.Trendline broken after many years
Points in favor of the bulls..
1.Ichimoku cloud has reflected the price upward
2.Bullish CD leg of the Bearish ABCD harmonic is still left to be completed
3.Price action is well above the neck line of the rounding top
Impression... Short term bearishness within a long term bullish sentiment
1. A perfect rounding top in formation
2.Rsi divergence at the top
3.A bearish ABCD harmonic
4.Trendline broken after many years
Points in favor of the bulls..
1.Ichimoku cloud has reflected the price upward
2.Bullish CD leg of the Bearish ABCD harmonic is still left to be completed
3.Price action is well above the neck line of the rounding top
Impression... Short term bearishness within a long term bullish sentiment
Comment:
the present reflection from the ichimoku cloud can be explained in the weekly charts where there is cloud testing going on after a double top with gross price momentum divergence, using the fibo levels, a resistance level of 0.886 is possible followed by a rejection from the upper margin of the could and restart of the bearish trend....
Note the divergence in rsi...