Yellow zones- critical zones based on the monthly time frame
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
In my previous post i analysed the monthly time frame and now it is time to take a look on the daily and 4h. As i said in my monthly analysis, price will most likely move downwards forming new lower lows bellow the 1.21200 area. Most likely this scenario won't play out straight away. One or more rejections around the monthly critical 1.60000 area can be expected where support at the second monthly critical around 1.51000 can be received- resulting in multiple swings. A rejection from the 1.53-1.54 area will mean that the price is ready to move down where the next buying pressure zone can be seen at the daily critical area around the 1.46-1.47 zone.
"Why won't the price go straight down?" - well i think that it should already have done that with the first rejection in March, but instead it entered into a consolidation since then, which means that buying pressure is still relevant.
In order that this scenario works multiple rejections around the key areas need to happen.
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
In my previous post i analysed the monthly time frame and now it is time to take a look on the daily and 4h. As i said in my monthly analysis, price will most likely move downwards forming new lower lows bellow the 1.21200 area. Most likely this scenario won't play out straight away. One or more rejections around the monthly critical 1.60000 area can be expected where support at the second monthly critical around 1.51000 can be received- resulting in multiple swings. A rejection from the 1.53-1.54 area will mean that the price is ready to move down where the next buying pressure zone can be seen at the daily critical area around the 1.46-1.47 zone.
"Why won't the price go straight down?" - well i think that it should already have done that with the first rejection in March, but instead it entered into a consolidation since then, which means that buying pressure is still relevant.
In order that this scenario works multiple rejections around the key areas need to happen.