By: Colin Jessup
The seems to have found support at 1.0280 with the last 5 4-Hour candles halting at this level, creating a bearish flag formation on the 4-hour chart. This level acted as both support and resistance in October and continues to be a strong zone. From the low in early October of 0.9387 to the high on October 27 we have retraced just shy of 38.2% at 1.023, which also happens to be a monthly S/R zone. If we break below 1.0335 we should encounter some strong support at 1.023 on our way to 1.006 below that. To the upside we will have resistance at 1.0397, 1.0482 and then 1.0500 and beyond. There is a good possibility of price dropping to around 1.020 before resuming the bullish tone set in October.
Happy Trading!
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