The bulls secured a very important renewal of the high making the whole mid-term structure an upward one. This, in turn, means that downward correction, which is in progress currently, will be limited by support at 1756.21-1758.00.
Trending downswing is forming within the local structure. Thus, in case of a break of the closest low at 1770.80, we would expect reaching the next support at 1756.21-1758.00 (black arrow).
However we need to remember that there is a supply area at the resistance zone 1797.50-1798.65 secured by the bearish pattern O&U that doesn't rule one more upward pullback (red scenario on the chart).
Main scenario: Decline to 1756.21-1758.00 followed by an upward reversal.
Alternative scenario: New upward correction from 1770.80 in direction 1797.50-1798.65.
Shorts to 1756.21-1758.00.
Pending shorts from 1797.50-1798.65.
Only from April 12, 2021, to May 14, 2021, Deposit Bonus 200% is available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of […]
FortFS wishes all traders a Happy Chinese New Year! Only from February 8 to March 12, 2021, we reduce spreads for the 4 most popular trading pairs. New values*: EURUSDf: 0.8 GBPUSDf: 0.9 USDJPYf: 1.0 XAUUSDf: 3.5 *These values are valid only for FLEX accounts Hurry up to take advantage of the offer! Learn more about spreads: https://www.fortfs.com/clients/specifications