Type:
Bullish Rise
Key Levels:
Resistance: 1.04665
Pivot: 1.03120
Support: 1.00260
Preferred Case:
On the H4, with prices breaking the descending channel , we have a bullish bias that price will rise from the pivot at 1.03120 where the 38.2% fibonacci retracement is to the 1st resistance at 1.04665 where the overlap support is.
Alternative Scenario:
Alternatively, price could break pivot structure and drop to the 1st support at 1.00260 where the swing low support.
Fundamentals:
The ECB surprised markets with a 50bps rate increase at its recent meeting, the first rate increase since 2011. However, uncertainty over strong inflation growth, recession in the Eurozone, and the ongoing gas crisis has led to the Euro failing to find sustainable upside moves beyond the resistance level .
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Written by Desmond Leong
Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.
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Japanese Yen E-mini Futures (J71!), H4 Potential For Bullish Rise
Source: Tickmill