With Brent having started a new bullish trend I am looking for chance to get long. Price is approaching an interesting area of support, and I will be watching for signs of strength. An ideal price is $46 as there is almost pip-perfect confluence with the 61.8% Fibonacci level.
All the recent dollar strength has seen the Euro fall with some real strength. However, price is fast approaching the 1.05 level which has real significance on the all the way up to the monthly charts. As its the 3rd time this price is tested on the monthly it may not hold for long, but any bounce could still be a profitable one.
Supporting criteria are on the...
Price has broken below horizontal and trendline support, meaning there is now bearish emphasis. Support has been found at 1.15, but I am expecting a retest of previous support before price continues to fall.
Targets would be the 50% and 61.8% fib levels
Should price pullback from this support level, the 23.6% Fibonnaci level (0.71781) offers the first area of resistance. If the trend is strong this could offer the first opportunity to hop on for the ride. Otherwise 0.725 has confluence with the 50% fib.
Following the recent false break of the months highs, price has broken below recent support levels and the rising trendline. I am now looking to short pullbacks. Preferably a failed retest of the trend-line around 0.76. I have highlighted potential areas for a bounce. Should price break below 0.75, things could get ugly pretty quickly.
On the daily, we have a bullish pin bar. I expect the momentum from today to continue into tomorrow. With that, we have a lower high on the hourly and suggests a litle weakness. Should price fall to $45.50s, I will be watching for bullish signs to get long, targeting the highs in the $46.90s