Price is approaching our first resistance at 1.3988 (horizontal overlap resistance) and a strong reaction might occur below this level, pushing price down to our major support at at 1.3743 (horizontal swing low support, 100% Fibonacci extension, 23.6% Fibonacci retracement). A breakout below our intermediate support at 1.3914 (horizontal overlap support) might provide the bearish acceleration to our major support level. Ichimoku cloud is also showing signs of bearish pressure, in line with our bearish bias.
RSI (89) is also seeing a bearish exit, a good precursor for a potential drop in price.
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RSI (89) is also seeing a bearish exit, a good precursor for a potential drop in price.
Trading CFDs on margin carries high risk.
Losses can exceed the initial investment so please ensure you fully understand the risks.
This analysis is provided as general market commentary and does not constitute investment advice. Past performance is not indicative of future results