My first
argument in favour of that expectation is the Pesavento butterfly that appeared
on the H4 time frame. The harmonic pattern fits all conditions, the mandatory of
which is the level of point B compared to the XA ray: 0.786. The pattern fits
the rest of the conditions for the formation of the A, C and D rays. The target
of the butterfly is point A at 1.3362.
My other
argument is the RSI divergence on the D1 time frame between three lows compared to the price, the
limit of which is at 1.3395 and is higher than point A.
If the pair
cannot break out above the dynamic resistance at 1.3180 it could depreciate
toward 1.3080 - 1.3040 to gather liquidity to test the resistance in the zone around 1.3370
– 1.3380 after which it will
continue rallying to reach the target of the Pesavento butterfly.
I'll watch those levels.
ReplyDeleteTaking note on these levels.
ReplyDeleteGood tip! I'll keep it in mind.
ReplyDeleteLet’s see how it keeps going.
ReplyDeleteExcellent Analysis! Thanks.
ReplyDeleteCorrection movements continue.
ReplyDeleteGood insight.
ReplyDelete