Analysis description
Timeframe 1H
The local uptrend after the breakdown of the channel reached the level of 1.14790, after which the correction started and the movement returned back to the channel. During the correction, the descending line was formed, the support level 1.14116 and the upper yellow liquidity zone were tested. The buyer bought out the yellow zone and the price broke through to the upside the descending triangle and tested the support level at 1.14330.
A lot of attention is focused on the price reaction in the red zone. There are high volumes here, as well as important Fibonacci retracement levels. For a bullish scenario, we need to consolidate above the 1.14590 level. Volatility has declined and the correction occurred on lower volumes.
On the 1H time frame we are above the 200MA; while testing the yellow zone TD Sequential gave a reversal signal at 1.13980; along with testing the lower boundary of the channel bounced off the 50 and 100MA
Timeframe 4H
On the 4H time frame, a golden cross is forming between 50MA and 200MA; a bullish pin bar continuation candlestick pattern was formed before the breakdown of the descending triangle.
Forecasts
I see 3 possible scenarios.
We can hold the lower border of the channel and quickly break up through the red zone.
If we breakdown of the channel but consolidate above the 1.14330 level, the red zone will become an accumulation zone.
If the price breaks through the 50 and 100MAs on the 1H timeframe, we may test the 1.14116 level again.
To confirm the global bullish scenario we need to consolidate above 1.14790.
Timeframe 1H
The local uptrend after the breakdown of the channel reached the level of 1.14790, after which the correction started and the movement returned back to the channel. During the correction, the descending line was formed, the support level 1.14116 and the upper yellow liquidity zone were tested. The buyer bought out the yellow zone and the price broke through to the upside the descending triangle and tested the support level at 1.14330.
A lot of attention is focused on the price reaction in the red zone. There are high volumes here, as well as important Fibonacci retracement levels. For a bullish scenario, we need to consolidate above the 1.14590 level. Volatility has declined and the correction occurred on lower volumes.
On the 1H time frame we are above the 200MA; while testing the yellow zone TD Sequential gave a reversal signal at 1.13980; along with testing the lower boundary of the channel bounced off the 50 and 100MA
Timeframe 4H
On the 4H time frame, a golden cross is forming between 50MA and 200MA; a bullish pin bar continuation candlestick pattern was formed before the breakdown of the descending triangle.
Forecasts
I see 3 possible scenarios.
We can hold the lower border of the channel and quickly break up through the red zone.
If we breakdown of the channel but consolidate above the 1.14330 level, the red zone will become an accumulation zone.
If the price breaks through the 50 and 100MAs on the 1H timeframe, we may test the 1.14116 level again.
To confirm the global bullish scenario we need to consolidate above 1.14790.