Price is approaching our first resistance at 113.36 (horizontal swing high resistance, 61.8% Fibonacci retracement) where a strong reaction might occur below this level pushing price down to our major support at 111.36 (horizontal pullback support, 23.6%, 50% Fibonacci retracement, 61.8% Fibonacci extension). Stochastic (34,5,3) is also seeing a bearish divergence an is reacting off our resistance and we might see a corresponding drop in price.Trading CFDs on margin carries high risk. Losses can exceed the initial investment so please ensure you fully understand the risks.
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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.