Price has shown a bearish breakout below the neckline of the Head and Shoulder pattern and also is holding below the EMA as well. We could see a further drop from 1st resistance at 1.24098 in line with graphical overlap resistance and 23.6% Fibonacci extension and towards 1st support at 1.21610 in line with -27.2% Fibonacci retracement and 61.8% Fibonacci extension. Our bearish bias is further supported by how Price is holding above the Ichimoku cloud and MACD is holding below the 0 line. Otherwise Price may bullish towards 2nd resistance at 1.24985 in line with 23.6% Fibonacci retracement and 38.2% Fibonacci extension.
Reason for Entry:
Graphical overlap resistance and 23.6% Fibonacci extension
Take Profit: 1.21610
Reason for Take Profit:
-27.2% Fibonacci retracement and 61.8% Fibonacci extension
Stop Loss: 1.24985
Reason for Stop Loss:
23.6% Fibonacci retracement and 38.2% Fibonacci extension.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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