On the H4, price is moving within the descending trendline in a descending manner, with the stoch is testing the resistance, the price may drop from the 1st resistance at 0.99192, which is in line with the overlap resistance to the 1st support at 0.97539, where the overlap support and 50% fibonacci retracement are. If the 1st support is broken, the 2nd support is at 0.96581, which is in line with the swing low. Alternatively, the price may break the 1st resistance and rise to the 2nd resistance at 1.00545, where the 78.6% fibonacci retracement sits.
Reason for Entry:
Take Profit: 0.97539
Reason for Take Profit:Overlap support and 50% fibonacci retracement
Stop Loss: 1.00545
Reason for Stop Loss:
78.6% fibonacci retracement
The material has been provided by InstaForex Company – www.instaforex.com