Price is currently contracting by the Weekly and Monthly pivot points
which aligns with the breakout level of the descending channel. On this
timeframe we can see a Flag pattern being formed. We can also see how
price is closing in on the Cloud. Normally it will spark a reaction when price
trade it. If price manages to close above the Flag and enter the Cloud it may
trigger a bigger move up, especially if we see a breakout above the Cloud.
Next resistance and pivot target is the Weekly Pivot point, which is yet
untraded at 2.06. A touch of the Cloud followed by a bounce lower and close
outside the Flag, is likely going to push price lower, targeting the Weekly S1
at 1.33 and the channel top.
We might also see price crawl sideways inside the Cloud, awaiting a Cloud twist
and first after that, make a serious attempt to breakout higher and shift the
trend. The ultimate target of the Bull Flag is the length of the pole at 2.60.
which aligns with the breakout level of the descending channel. On this
timeframe we can see a Flag pattern being formed. We can also see how
price is closing in on the Cloud. Normally it will spark a reaction when price
trade it. If price manages to close above the Flag and enter the Cloud it may
trigger a bigger move up, especially if we see a breakout above the Cloud.
Next resistance and pivot target is the Weekly Pivot point, which is yet
untraded at 2.06. A touch of the Cloud followed by a bounce lower and close
outside the Flag, is likely going to push price lower, targeting the Weekly S1
at 1.33 and the channel top.
We might also see price crawl sideways inside the Cloud, awaiting a Cloud twist
and first after that, make a serious attempt to breakout higher and shift the
trend. The ultimate target of the Bull Flag is the length of the pole at 2.60.
Comment:
It failed to close inside the Cloud and is moving lower now. Intraday support at 1.48 (Daily S1 and below 1.39 Daily S2 and lower end of the Flag.
Comment:
Price has been pushed lower by the Cloud resistance and is now again at the bottom of the Flag channel and has traded the Weekly S1 at 1.33. Price needs to enter the
Cloud on a bounce to avoid exiting the Flag to the downside, which probably will take price first to todays daily S4 at 1.2350 and if not supported the upper end of the larger channel. If we see normal price action and no state of renewed panic, this current level should hold support, i.e Weekly S1.
Cloud on a bounce to avoid exiting the Flag to the downside, which probably will take price first to todays daily S4 at 1.2350 and if not supported the upper end of the larger channel. If we see normal price action and no state of renewed panic, this current level should hold support, i.e Weekly S1.
