Big picture remains neutral as price remains trapped inside a trading range.
In the short-term price showed rejection signs at the 78.6% Fibonacci retracement and bearish divergence in the 4 hour charts implying a bearish reversal is close.
A Head and Shoulders pattern was formed over the last few sessions and yesterday we saw price break below the neckline support, however the follow through was not as strong to the downside as one would expect.
Price is fighting to get back above the neckline but as long as we are below it, trend will favor bears. Short-term resistance at 1.3340 and 1.3380. Breaking above these levels will decrease the bear’s strength.
Important reversal from the significant support at the 61.8% Fibonacci retracement with price making higher highs and higher lows. So important for bulls to hold above the 101.90 and break above the Ichimoku cloud in the 4 hour chart in order to continue higher towards 105-106. Otherwise a rejection here will put 100 level in danger.
Looking at this longer-term view the risk reward for long positions is favorable as price shows strength signs when reaching the red trend line support. Price is testing the daily Ichimoku cloud resistance and a break above 1.32 will confirm that start of a new upward move that could push price towards 1.36.
Trapped inside a huge triangle pattern. 0.7750 is the upper boundary while 0.7440 is the lower boundary of the triangle.
Double top yesterday at 0.7490 and an ugly reversal to the downside. Price is showing rejection signals at the upper boundary of a huge long-term trading range implying big downside potential.
Short-term support is at 0.73 while resistance remains at 0.7490.
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