Technical expectations shine the spotlight on the possibility of a continuation run towards $0.7660.
As you can see, the double-bottom pattern ($0.6991) had its neckline taken ($0.7314) in early March, with the pattern drawing attention to its profit objective at $0.7660. Upside momentum is lacking energy, nonetheless.
According to the relative strength index (RSI), despite a clean rebound from the 50.00 centreline, has yet to engulf the high 68.24 formed on 4th March.
Consequently, bearish divergence could eventually emerge. Overbought territory may also be challenged, with indicator resistance from 74.80 of particular importance.
In terms of the weekly timeframe, buyers eventually regained consciousness within prime support at $0.6948-0.7242 and led action to resistance from $0.7501.
Weekly prime resistance at $0.7849-0.7599 also warrants focus, having seen the daily timeframe’s double-bottom pattern profit objective residing within the area at $0.7660.
The trend, however, appears to be averse to the idea of surpassing the noted resistance levels on the weekly scale.
Longer-term—the monthly timeframe—has portrayed a downtrend since August 2011, suggesting the 12.6 percent correction from mid-Feb tops at $0.8007 (2021) on the weekly timeframe might be the start of a bearish phase and not a dip-buying correction from the 2021 advance from pandemic lows of $0.5506.
This highlights a possible bearish scene from $0.7051 resistance or prime resistance at $0.7849-0.7599. If a $0.6948-0.7242 break lower should come to pass, weekly support at $0.6673 and a 50% retracement at $0.6764 are observable.
Meanwhile, on the H4 timeframe, Quasimodo support-turned resistance put in an appearance on Wednesday at $0.7501.
Technically this level shares chart space with the weekly timeframe’s current resistance, yet should a $.7501 break take shape on the H4, Quasimodo resistance is seen at $0.7527.
From the H1 timeframe, on the other hand, price reclaimed position above $0.75 and is on the verge of bringing in prime resistance at $0.7529-0.7517.
Weekly resistance at $0.7501 (and H4 resistance) making a show could trigger a whipsaw above $0.75 on the H1 into prime resistance at $0.7529-0.7517. Testing the latter and securing a dominant close south of $0.75 may be observed as a short-term bearish cue to drop in on H1 Quasimodo resistance-turned support at $0.7459.
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