USD bulls have struggled to push past 0.8785 for the whole month, the level has numerous confluence factors, below is a descriptive list of these factors;
1. 0.8775 is around the proximity of the August open. Since the beginning of the month, price has made more lows than it has made highs off this level.
2. A pitchfork (depicting slope) drawn off the June-open (high), June-low (low) and June close (high); signals that a slope that is 1.5 deviations away from the median line (purple dotted line) of these reference points is coming into play.
3. Using the same reference point from point number 2 above, to draw a Fibonacci expansion, we can see that price broke the level 1 and 1.618 expansion during the month of July. Usually, when these Fib expansion levels break, they tend to serve as pivots for price.
4. A basic Fibonacci retracement drawn off the June-July decline, illustrates that USD bulls have failed to push this pair past 38.2%, which also lines up with the level 1 Fib expansion mentioned above.
These factors help to build a valid premises for a good swing traders.
GOOD LUCK!!!
1. 0.8775 is around the proximity of the August open. Since the beginning of the month, price has made more lows than it has made highs off this level.
2. A pitchfork (depicting slope) drawn off the June-open (high), June-low (low) and June close (high); signals that a slope that is 1.5 deviations away from the median line (purple dotted line) of these reference points is coming into play.
3. Using the same reference point from point number 2 above, to draw a Fibonacci expansion, we can see that price broke the level 1 and 1.618 expansion during the month of July. Usually, when these Fib expansion levels break, they tend to serve as pivots for price.
4. A basic Fibonacci retracement drawn off the June-July decline, illustrates that USD bulls have failed to push this pair past 38.2%, which also lines up with the level 1 Fib expansion mentioned above.
These factors help to build a valid premises for a good swing traders.
GOOD LUCK!!!