- Trend. I find the trend down; the ongoing rally is corrective in nature. I expect price to move down to one of the support levels.
- Support. I find the key major support at the last major lows, which coincide with the (29). Minor support: first at the 23.6% retracement (32), next at , in line with the top of the bottoming bar (29.9).
- Resistance. The rising market has found resistance at parallel . Price may find the next resistance at the multipivot support-resistance level of 34.3, and then at the next paralle .
- Trading opportunites: entry at one of the resistance levels, with a stop-loss order above some prior high, looking to exit at one of the support levels with R:R of at least 1:1.
Here's the summary of how I see the current situation in financial markets (as of 23.02.2016, 16:00 CET):
The strongest currency: JPY (recently strengthening, relatively overbought, likely to weaken soon).
The weakest currency: GBP (recently not doing much, still relatively oversold)
The leading markets:
- XAUGBP - trending up;
- GBPJPY - trending up;
- Natural Gas - trending down;
- GBPCAD - trending down (however, be cautious trading it - it may soon be looking for a long-term bottom in a long-term up trend)
- GBPAUD - trending down (however, be cautious trading it - it may soon be looking for a long-term bottom in a long-term up trend)
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