Price did not retrace as expected yesterday. We could see a dip (close) to 11256, following which price should break out to the upside to 11600. Divergence formed to the RSI as well so a test to 11600 is on the cards.
How price plays out from 11600 is anyone's guess. If it acts as resistance, we could see a decline back to 11256 and maybe a break lower. If 11600 gives way and acts as support 1200 - 12052 is quite possible.
Note that there is a larger falling wedge taking shape, and a break out will see perhaps the previous highs being tested.
Get clues from Dollar index (positive correlation) and of course EURUSD (-ve correlation)
Comments
thiagonobre1
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Hi... very interesting analysis! This is exactly what's happening today...
Did you run any updates on your scenarios based on today's rise? Would be great to get your insight...
justatrader
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Hi, we saw a Doji followed by two bullish candles so the bias is looking higher. 11600 could be tested for support. if it holds, 12000 would be the next target. But a close below 11600 will see a drop back to 11500.
thiagonobre1
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Thanks Bud... We shall see what will happen today!
I currently have a long position (entered at ~11475) and was trying to get thoughts on what to do with it... (Cash in the small profit now or hold the position for the bigger profit later this week?!)
My thoughts were very similar to yours, so for now I'm holding it...
Did you run any updates on your scenarios based on today's rise? Would be great to get your insight...