Price has come off the 6000 mark and returned to the broken support line
(broken on June 10). This former support line intersects with a resistance
trend line going all the way back to the beginning of march. Price has tested
the support line from below and is now attempting to pierce through the
intersection of the both trend lines, while at the same time breaking above
the Kumo Cloud (which has a bullish twist in place).
I have marked the horizontal Support/Resistance levels with red bars. If price
closes above the current S/R level, chances are good we will see appreciation
to the next S/R zone around 8800, which will stand just above the important
SMA200 (200 day moving average - the blue line). The SMA200 has acted
resistance during the latest two tests. This will be the real test for bulls because
if it is broken it will expose the important top from May 5 just below 10000.
If the 10000 level is breached we will have a proper reversal swing in place and
things will instantly look much brighter for the pair.
On the downside, if the current test fails and price returns below the red S/R zone
and the previously broken support line, we might see a test of the 6800 level
(the S/R zone below the current one). This would be quite natural as a retest
from above. Only a close below the 6800-6600 level will seriously expose further
downside and the current low around 5800.
(broken on June 10). This former support line intersects with a resistance
trend line going all the way back to the beginning of march. Price has tested
the support line from below and is now attempting to pierce through the
intersection of the both trend lines, while at the same time breaking above
the Kumo Cloud (which has a bullish twist in place).
I have marked the horizontal Support/Resistance levels with red bars. If price
closes above the current S/R level, chances are good we will see appreciation
to the next S/R zone around 8800, which will stand just above the important
SMA200 (200 day moving average - the blue line). The SMA200 has acted
resistance during the latest two tests. This will be the real test for bulls because
if it is broken it will expose the important top from May 5 just below 10000.
If the 10000 level is breached we will have a proper reversal swing in place and
things will instantly look much brighter for the pair.
On the downside, if the current test fails and price returns below the red S/R zone
and the previously broken support line, we might see a test of the 6800 level
(the S/R zone below the current one). This would be quite natural as a retest
from above. Only a close below the 6800-6600 level will seriously expose further
downside and the current low around 5800.