Type:
Bearish Momentum
Key Levels:
Resistance: 1738.4
Pivot: 1721.8
Support: 1678.5
Preferred Case:
On the H4, with price moving within a descending channel and RSI moving along a descending trendline, we have a bearish bias that price will drop from the pivot at 1721.8 where the pullback resistance is to 1st support at 1678.5 in line with swing low support and 78.6% fibonacci projection .
Alternative Scenario:
Alternatively, price may break pivot structure and rise to the 1st resistance at 1738.4 where the swing high resistance and 38.2% fibonacci retracement are.
Fundamentals:
As DXY rose in strength, we have a bearish view on precious metals like Gold .
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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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Source: Tickmill