Price dropped below the Daily Cloud and trend has turned bearish
on this timeframe. On the 4 hour chart to he right, we can see how
price has tried to break above the descending trendline but has failed
every attempt. Though price took out the low from Jan 22 on this
sharp drop we just saw, there is bullish divergence (and also hidden
bullish divergence between the Jan 17 and 22 lows). Depending
on how this current candle close, it will give direction clues going
forward. If it closes below the Jan 22 low at 1.10 it may try to
push lower towards the 0.875 low, but there seems to be buyer
interest at current levels, at least for now which shows both in the
long wick candle and the bullish divergence. Bulls would like to
see a close above 1.33 (lower Cloud) and 1.37 the S/R level to
relieve the immediate bearish pressure. A complete dump from
here should be supported by the 0.87 low which is also the Weekly S1.
on this timeframe. On the 4 hour chart to he right, we can see how
price has tried to break above the descending trendline but has failed
every attempt. Though price took out the low from Jan 22 on this
sharp drop we just saw, there is bullish divergence (and also hidden
bullish divergence between the Jan 17 and 22 lows). Depending
on how this current candle close, it will give direction clues going
forward. If it closes below the Jan 22 low at 1.10 it may try to
push lower towards the 0.875 low, but there seems to be buyer
interest at current levels, at least for now which shows both in the
long wick candle and the bullish divergence. Bulls would like to
see a close above 1.33 (lower Cloud) and 1.37 the S/R level to
relieve the immediate bearish pressure. A complete dump from
here should be supported by the 0.87 low which is also the Weekly S1.