Technical
Monthly: Broken out of the channel formation to the downside. This is negative for sentiment and the downtrend has potential to return. A lower correction is expected. We have a 50% Fibonacci pullback level of 11148 from 8695 to 13601.
Weekly: The bearish engulfing candle on the weekly chart is negative for sentiment. A bearish Head and Shoulders is forming. A break of 11703 is needed to confirm follow through negative momentum. A sequence of weekly lower lows and highs has been posted.
Daily: A sequence of daily lower lows and highs has been posted. As this corrective sequence continues we look to set shorts on a rally at better risk/reward levels. Previous support level of 12102 broken. A mild correction has been posted from yesterday’s low, this is seen as a retest of the breakout level. Further downside is expected although we prefer to set shorts at our bespoke resistance levels at 12100, resulting in improved risk/reward. Expect trading to remain mixed and volatile.
We look to Sell at 12100
Stop: 12250
Targets: 11750 and 11150
Update: The move to 12100 triggered our short trade (13/09/2018 09:07:00)
Update: Stopped at 12250 (20/09/2018 – 09:00:00)
Risk Warning
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Before deciding to invest in spot foreign exchange or futures you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with spot foreign exchange and futures trading, and seek advice from an independent financial advisor (IFA) if you have any doubts. All information posted on this website is of our opinion and the opinion of our visitors, and may not reflect the truth. Please use your own good judgment and seek advice from a qualified consultant or IFA, before believing and accepting any information posted on this website.
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Losses can exceed deposits