On the daily chart below, we can see that the buyers stepped in aggressively as the market pulled back to the 61.8% Fibonacci retracement level of the entire bullish move at the start of 2023.
The price is now just above the trendline that could lead to the confirmation of the bullish flag breakout and a possible rally above the 12274 resistance. The sellers will have the 11829 resistance as the last line of defence, otherwise the buyers will confirm the pattern and take control.
On the 4 hour chart below, we can see that the market is tentative breaking out of the trendline. Today, we should see the market opening lower as the Fed tonight took another emergency action in enhancing US Dollar liquidity via swap lines with other major central banks.
This weighed on risk sentiment as the market is fearing that something serious may be happening in the banking system and this can impact the whole economy. In fact, during the APAC session we saw futures selling off non-stop.
On the 1 hour chart below, we can see that the buyers will have the upward minor trendline as support where it’s likely that they will start to pile in targeting the 11829 resistance and then a breakout.
We can also find the red long period moving average there for confluence. The sellers will need a break below the trendline to gain some control and then a cross to the downside of the moving averages will give more conviction as it would be an early signal of a change in trend.
