From Investor to Scalper – series of studies created in cooperation with broker BDSwiss, in which we take a financial instrument and the analysis includes a detailed look at the value from the monthly chart and ending with 5/15 minutes.
On the monthly chart we can see that after setting historical highs at 1.6040 and rejecting upper band of bullish channel in 2008 market is moving down. Currently since March 2015 we can see some consolidation and break in any way could set direction of the movement in the next months and maybe even years.
Looking a little closer at the current situation we can notice that in January 2015 strong bearish impulse broke very important support area near 1.2150 where we can also spot 50% Fibonacci correction of previous gains.
Depreciation reached to 70.7% Fibonacci area and just in 2015 market rejected it twice. Considering decreases dynamics from this month in the nearest time we should expect another test of this level. In case of breaking it the way for further decreases even to 0.8450 area could be opened.
On the weekly chart we can see that mentioned 1.2150 level is also next to 50% Fibonacci correction of lasting since May 2014 until March 2015 decreases. Since this moment market moves in consolidation and created triangle pattern. Last week decreases defeated local support in 1.0960 area and in nearest time we can expect bullish correction and re-test of that level (as a resistance). Rejecting that would be a signal of continuation of decreases even to lower bound of the triangle pattern.
On the daily chart we can see that decreases stopped in area of another local support at 1.0850 and since beginning of the week we observe bullish correction.
On H4 we can see that in bullish correction there is more probability of testing mentioned resistance area next to 1.0960 which is again next to 50% Fibonacci correction, this time of last two weeks long depreciation.
At H1 chart we can see that tonight market reached and rejected local support area between 1.0895 and 50% correction of earlier gains. Currently price broke also local resistance and if gains will be continued it should reach at least yesterday’s highs area.
On M15 we can see fight between bulls and bears, doji candles were created as an effect of that. The direction for the next day can be decided by break in any way.