Drawing a daily fib, price failed to break the 50% level (also confluent with previous resistance, now support) on its bearish leg down.
What followed on the 50% fib was a bullish engulfing candle indicating potential upwards momentum.
Currently there are two drawn trendlines. If there is breakout of the inner trendline on the smaller timeframe it will warrant a long move. A further position may be added after a break of the outer trendline, targeting the 23.6% fib which is also confluent with previous resistance.
On a longer term basis, if target 1 is surpassed, then a new higher high will be expected, potentially at 1.600.
ON THE OTHER HAND, if price does not show appropriate bullish price action on smaller timeframes near the trendline, the a short move can be considered if the support around 1.500 is broken and retested as resistance.
What followed on the 50% fib was a bullish engulfing candle indicating potential upwards momentum.
Currently there are two drawn trendlines. If there is breakout of the inner trendline on the smaller timeframe it will warrant a long move. A further position may be added after a break of the outer trendline, targeting the 23.6% fib which is also confluent with previous resistance.
On a longer term basis, if target 1 is surpassed, then a new higher high will be expected, potentially at 1.600.
ON THE OTHER HAND, if price does not show appropriate bullish price action on smaller timeframes near the trendline, the a short move can be considered if the support around 1.500 is broken and retested as resistance.
