Based on the daily chart, Price action clearly rejected from support with a bullish englufing candle
Potential for new highs
4h Hourly Chart
There is a slight divergence on the stochastic
Asian Session started lower, and found support at the 50% retrace
Trend followers should consider going long from here
Hourly Chart
The 50% retrace level, is also a confluence of fib ext 127.2 from recent swing down (retrace leg), if this level fails, the 61.8% is next support (and 161.8 ext)
Next potential strong resistance is at the 106.-106.200 where we find many confluence of fib ext levels - Counter trend setup
Outlook Trade opportunity
Opportunity to go long following confirmation in Daily chart. (Please see H4) Another opportunity is a counter trend trade which probably won't be this week, however would setup a sell order at the projected major resistance level (please see H1 Chart)
After beginning the week a tad higher , we hit resistance around the 61.8% retrace and continued lower
We have found temporary support at a 61.8% retrace from NOV low to Dec Highs,
Price action shows very heavy pressure and looks like a potential to go lower
Stronger support is lower at around 1.345 which is a confluence of a fib extension of 127.20 (reverse calculation of most recent swing retrace) & a 161.8 fib ext (of the Dec highs swing down to first week of Jan) and Also which is a Mid Monthly pivot from S1 to S2.
At this stage, trend traders would look for opportunity to short if Monday / Tuesday provides some retrace and Target 1.345 (As shown in 4 hourly Chart)
4 Hourly Chart
A very good potential short setup if a retrace to the 38.2/50/61.8 fib level with confirming price action candles to follow the short to find lower lows
Hourly Chart
Monday Asian session hourly candle had shown price action tried to break lower, but with another candle recovering (engulfing or a railway candlestick pattern) - this is showing market finding support at this current stage and wants to retrace higher before continuing down
On my hourly chart, I have only shown possible counter trade levels
Outlook Trade opportunity
This week I have a few trade setups. Trend following Trades - 1 - Please look at the 4h Chart and Daily Chart Counter Trend Trades 2 x Trade levels on the 1H Chart
Tips -
Always take note of any economical news event on our provided calender below
