Charts: Trading View
(Italics: Previous Analysis)
Having seen daily price remain north of the $1.0638 pandemic low (March 2020), in addition to the weekly timeframe demonstrating scope to approach Quasimodo support-turned resistance at $1.0778, H1 Quasimodo resistance-turned support at $1.0631 could be an area the charts observe buyers display interest from, if tested. Bolstering the noted H1 support, of course, is H1 channel support, extended from the low $1.0349, together with a 50% retracement at $1.0639 and a 38.2% Fibonacci retracement.
However, it is important to note that in order for the H1 support to make a show, H4 supply-turned demand at $1.0655-1.0632 must have its lower edge taken.
This remains a sellers’ market according to trend direction, placing a favourable light on daily resistance at $0.7170, which accommodates a 78.6% Fibonacci retracement at $0.7174 and a 38.2% Fibonacci retracement at $0.7149.
H4 trendline resistance-turned support, taken from the high $0.7661, is currently serving buyers relatively well. Though given $0.71 on the H1 chart is anticipated to deliver short-term resistance, aided by a 100% Fibonacci projection at $0.7102 and a trendline support-turned resistance, drawn from the low $0.6829, H4 buying could be problematic.
In light of the current trend, $0.71 offers sellers immediate resistance, with a break drawing light to daily resistance at $0.7170.
The secondary correction on the weekly timeframe demonstrates room to extend losses to support from ¥125.54. Having noted scope to discover deeper water on the bigger picture, and H4 price retesting resistance at ¥127.44, follow-through selling towards ¥126.00 (H4 double-top pattern profit objective) could be seen.
All eyes remain on weekly and daily resistance levels at $1.2719 and $1.2762, respectively.
Lower on the curve, H4 resistance is also in the spotlight between $1.2686 and $1.2614, which may be enough to entice a bearish showing prior to reaching higher timeframe resistances, if only for a brief period.
Note that this H4 resistance zone also sits just above $1.26 on the H1 scale—stop-run? A whipsaw above $1.26 that tags the noted H4 resistance zone, therefore, could be a setup that encourages a bearish scene, short term.
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