Prime support at $0.6968-0.7242 continues to play a crucial role on the weekly timeframe. Bulls, as you can see, welcomed a bullish phase into the close of 2021. Should buyers continue pressing higher, resistance is formed at $0.7501.
Manoeuvring beneath $0.6968-0.7242 reveals support at $0.6673 and a 50.0% retracement at $0.6756.
Since mid-Feb 2021, a downside bias has been seen, following higher prices since pandemic lows of $0.5506 (March 2020). However, from the monthly timeframe the unit has been entrenched within a large-scale downtrend from mid-2011.
Resistance—made up of a 61.8% Fibonacci retracement at $0.7340, a 100% Fibonacci projection at $0.7315, an ascending resistance, drawn from the low $0.7106, trendline resistance, drawn from the high $0.7891, and the 200-day simple moving average at $0.7247—offers healthy (technical) confluence on this chart.
Obvious support at $0.7021 calls for attention to the downside in the event sellers track lower price levels from the above resistance.
The relative strength index (RSI) has shaped 50.00 centreline support, action informing traders and investors that average gains surpass average losses: positive momentum.
Quasimodo support-turned resistance at $0.7287 elbowed its way into the spotlight on Wednesday, a level placed a handful of pips above prime resistance drawn from $0.7323-0.7308. Larger prime resistance is also visible at $0.7338-0.7292. Note that the larger prime resistance is glued to the lower side of daily resistance highlighted above between $0.7247 and $0.7315.
Following a recent break of resistance at $0.7273, influenced on the back of latest US CPI figures weighing on the dollar, $0.73 is visible to the upside. Note that should sellers make a play and close back under $0.7273, demand is arranged at $0.7205-0.7217.
Alongside short-term flow tipped to test the mettle of $0.73, the relative strength index (RSI) is testing space high within the walls of overbought territory—a space sellers will be watching closely for signs of bearish intent on the price chart.
Observed Technical Levels:
The combination of daily resistance between $0.7247 and $0.7315, H4 prime resistance at $0.7338-0.7292 and the $0.73 figure on the H1 scale is likely enough technical confluence to attract bearish attention. Focus, however, is perhaps to remain within the H4 prime resistance zone.
The caveat to lower prices developing from said resistances, of course, is the weekly timeframe’s prime support coming in at $0.6968-0.7242.
Credit: www.fxempire.com – Source link