Recent trading witnessed weekly price shake hands with resistance at $0.7501.This followed a decisive bid from weekly prime support at $0.6948-0.7242.
For those who read Thursday’s technical briefing you may recall the following text regarding higher timeframes:
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.
From the daily timeframe, we can see the currency pair sailed above trendline resistance, drawn from the high $0.8007.
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 clearly lacking energy.
According to the relative strength index (RSI), despite a rebound from the 50.00 centreline, the indicator 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.
Price action on the H4 timeframe exposes Quasimodo resistance at $0.7527. Technically this level shares chart space closely with the weekly timeframe’s current resistance.
On the downside, Quasimodo resistance-turned support can be seen at $0.7451.
H1 prime resistance at $0.7529-0.7517 (houses $0.7527 H1 resistance) greeted price action on Thursday and subsequently delivered price to $0.75.
Downstream, H1 Quasimodo resistance-turned support from $0.7459 is seen.
Weekly resistance at $0.7501, joined closely with H4 resistance at $0.7527 and H1 prime resistance from $0.7529-0.7517, could be sufficient to hold back additional buying. Sellers, nonetheless, are likely to want to observe a H1 close establish sub $0.75 before committing, targeting H1 Quasimodo resistance-turned support at $0.7459 and the H4 timeframe’s Quasimodo resistance-turned support from $0.7451.
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