On the daily chart below, we can see that the price has broken below the 1920 support that was previously a strong resistance on the way up. The moving averages have now crossed to the downside signalling a possible change in trend.
The 1920 zone will now act as resistance and the sellers are likely to maintain control below it. If we get a bigger pullback, the price may trade around the 1920 and test the red long period moving average before continuing downwards.
In the 4 hour chart below, we can see that the price has eventually breached the 1920 support as the market started to reprice a higher terminal rate and possibly higher chances of a hard landing afterwards.
The price has pulled back to the 1920 support now turned resistance and the red long period moving average. We should see sellers coming in here.
In the 1 hour chart, we can see that the confluence of the trendline, the Fibonacci retracement levels and the 1920 resistance provide the sellers with a strong level to lean on with defined risk above.
There’s lots of room on the downside as the next strong support comes at 1730. Right now, the price has been ranging a bit and it may be a good idea for the sellers to wait for the moving averages to cross downwards before piling in.
