Okay so on the chart I have noticed that the channel was finally broken the other day - only for the breakout to be rejected with a huge comedown back into the channel. By applying a Fibonacci retracement to this new high we can identify future S/R levels.
Now we're currently at the 0.5 Fib level (1.966) and there was a slight breakout from the channel but this time a bearish one. However, like the last breakout, the price appears to be rejecting the breakout and it wants to go back into the channel. This could be due to the support factor of the 0.5 FIb and the Cloud.
Therefore, if the price were to continue and once again reject the breakout, let's aim for the 0.236 level at 1.9822 with a nice risk reward of 3:1.
I've applied a tight stop just below the cloud - if the price were to drop then it would not doubt continue a bearish rally.
Now we're currently at the 0.5 Fib level (1.966) and there was a slight breakout from the channel but this time a bearish one. However, like the last breakout, the price appears to be rejecting the breakout and it wants to go back into the channel. This could be due to the support factor of the 0.5 FIb and the Cloud.
Therefore, if the price were to continue and once again reject the breakout, let's aim for the 0.236 level at 1.9822 with a nice risk reward of 3:1.
I've applied a tight stop just below the cloud - if the price were to drop then it would not doubt continue a bearish rally.