From looking at price action whilst also corresponding with the monthly time frames we can see that
price has made a head and shoulders formation after the initial sell off. Which could indicate further downside movement.
Correlation with hourly charts show 31.8 fib in use around 1.243.
Let see this play out :)
With news surrounding COVID 19 and pressure for all of all the
economy being in lockdown we can look at the chart formation to
see how the market is reacting.
On the monthly levels we have an evening start formation around 1.35000
Which could indicate a strong sell off from this zone.
March candle continuing this probability with a hard push down to 1.165...
Price has been in a visitant downtrend since
march 2018. Downtrend seeming to continue in
2020. price has respected 38,2 fib level constantly
in larger and smaller time frames especially 4H.
Looking for price to reach support level at approx 1.04791
Price has been on a strong bullish move since sept 2019.
From a double bottom from previous support in September. Looks like a strong hold.
Continuation pattern appeared shortly after. Price is currently in an area of a strong resistance.
price is now likely to reverse to a Fibonacci level of 38.2
Following recent downtrend movement, price has now come to 61.8 retracement.
Also whilst forming a daily doji candlestick at that point.
Price also made a daily doji and triple bottom at a level of previous support, so price is also justified to break to the upside or even a further retracement. But my guess leads to further downside potential
61.8% retracement on 1h
- Stochastic indicating reversal
- market to reach 1.15335 (strong zone of structure)
- before potentially signalling head and shoulder pattern
- *potential bullish momentum to come if price respects zone and does not breakthrough
- RSI approaching overbought area
- Stochastic anticipating reversal
-Looking left zone confirms key area
of structure both as support & resistance
- Strong Trendline on Weekly
- RSI Divergence on Daily
*Anticipating a harsh sell mostly on 1h chart, before retracement then continuation into sell position