Type:
Bullish Breakout
Key Levels:
Resistance: 0.70635
Pivot: 0.69923
Support: 0.68946
Preferred Case:
On the H4, with price moving above the ichimoku cloud and breaking out of the descending trend channel and moving in an ascending support, we have a bullish bias that price will rise to the pivot at 0.69923 at the overlap resistance in line with the 78.6% fibonacci retracement . Once there is upside confirmation of price breaking pivot structure, we would expect bullish momentum to carry price to the 1st resistance at 0.70635 at the swing high resistance.
Alternative Scenario:
Alternatively, price may reverse off pivot structure and drop to the 1st support at 0.68946 at the pullback support.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.