H1 descending triangle pattern may find opposition at 0.68
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
May’s extension as well as June’s follow-through swerved action into supply at 0.7029/0.6664, an area benefitting from additional resistance by way of a long-term trendline formation (1.0582).
Regarding the market’s primary trend, a series of lower lows and lower highs have been present since mid-2011.
Daily timeframe:
Partially altered from previous analysis –
After squaring off under two trendline resistances (prior supports – 0.6744/0.6671), and shipping through support from 0.6931, the latter proved worthy resistance last week.
This has thrown light on support nearby at 0.6755, with a violation perhaps unmasking the 200-day simple moving average at 0.6664. It should be noted the moving average is in the process of flattening, following months of drifting lower.
H4 timeframe:
Demand at 0.6773/0.6814 is ripe for another run this week, an area boasting a connection with a 38.2% Fib level at 0.6808. What’s also particularly attractive about the aforesaid demand is a possible deep ABCD correction at 0.6779.
Failure to stir a reaction here, this may establish a basis for bringing in demand at 0.6695/0.6664 (prior supply).
H1 timeframe:
Partially altered from previous analysis –
Since the beginning of the week, H1 has been in the process of forming a descending triangle pattern (slightly revised from Friday’s analysis) between 0.6976 and 0.6836. Although it’s usual to see these form in a downtrend, they can represent reversal patterns. A notable downside break here, according to the pattern’s take-profit target (yellow – measured by taking the base value and adding this to the breakout point), could reach as far south as 0.67.
Sellers picked up the pace into US trade Friday after finding thin air above 0.69. The 100-period simple moving average ceded ground, as did 0.6850, holding as resistance into the close. Also prominent is the lower base of the descending triangle coming under attack. Below, traders will note 0.68 resting as possible support.
Structures of Interest:
Long term:
Monthly supply at 0.7029/0.6664, along with monthly trendline resistance, and daily resistance at 0.6931, is likely sufficient to fuel sellers this week.
Short term:
H4 demand at 0.6773/0.6814, particularly off the ABCD level at 0.6779, may temporarily take the wind out of sellers.
A confident break below the H1 descending triangle pattern may find opposition at 0.68, as the number is located within H4 demand at 0.6773/0.6814. A break of here, however, lines up daily support at 0.6755, followed by 0.67 on the H1 which essentially also represents the upper boundary of H4 demand at 0.6695/0.6664 and the H1 descending triangle’s take-profit target.
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
May’s extension as well as June’s follow-through swerved action into supply at 0.7029/0.6664, an area benefitting from additional resistance by way of a long-term trendline formation (1.0582).
Regarding the market’s primary trend, a series of lower lows and lower highs have been present since mid-2011.
Daily timeframe:
Partially altered from previous analysis –
After squaring off under two trendline resistances (prior supports – 0.6744/0.6671), and shipping through support from 0.6931, the latter proved worthy resistance last week.
This has thrown light on support nearby at 0.6755, with a violation perhaps unmasking the 200-day simple moving average at 0.6664. It should be noted the moving average is in the process of flattening, following months of drifting lower.
H4 timeframe:
Demand at 0.6773/0.6814 is ripe for another run this week, an area boasting a connection with a 38.2% Fib level at 0.6808. What’s also particularly attractive about the aforesaid demand is a possible deep ABCD correction at 0.6779.
Failure to stir a reaction here, this may establish a basis for bringing in demand at 0.6695/0.6664 (prior supply).
H1 timeframe:
Partially altered from previous analysis –
Since the beginning of the week, H1 has been in the process of forming a descending triangle pattern (slightly revised from Friday’s analysis) between 0.6976 and 0.6836. Although it’s usual to see these form in a downtrend, they can represent reversal patterns. A notable downside break here, according to the pattern’s take-profit target (yellow – measured by taking the base value and adding this to the breakout point), could reach as far south as 0.67.
Sellers picked up the pace into US trade Friday after finding thin air above 0.69. The 100-period simple moving average ceded ground, as did 0.6850, holding as resistance into the close. Also prominent is the lower base of the descending triangle coming under attack. Below, traders will note 0.68 resting as possible support.
Structures of Interest:
Long term:
Monthly supply at 0.7029/0.6664, along with monthly trendline resistance, and daily resistance at 0.6931, is likely sufficient to fuel sellers this week.
Short term:
H4 demand at 0.6773/0.6814, particularly off the ABCD level at 0.6779, may temporarily take the wind out of sellers.
A confident break below the H1 descending triangle pattern may find opposition at 0.68, as the number is located within H4 demand at 0.6773/0.6814. A break of here, however, lines up daily support at 0.6755, followed by 0.67 on the H1 which essentially also represents the upper boundary of H4 demand at 0.6695/0.6664 and the H1 descending triangle’s take-profit target.
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