Good morning all!
Hope everyone had a rested weekend after CPI news.
So after a week of decline we saw CPI provide a nice pump back into the 1780 region.
If during todays London session we continue up, we can look to see resistance at around 1795. If this is rejected I would expect to drop back to 1770, and if this critical resistance is broken we can expect a further drop. Price action and divergence on the 15 minute rsi provide further confirmation of a likelihood of dropping to me.
Alternatively, I believe that because CPI news had expected positive sentiment, my theory is that we had a week of decline to compensate and avoid prices going higher too fast. If this is the case we can expect price to respect the outlined regression line and slowly climb to the 1830 region.
If you found this useful please shoot me a like and feel free to leave some feedback.
Trade safe!
Hope everyone had a rested weekend after CPI news.
So after a week of decline we saw CPI provide a nice pump back into the 1780 region.
If during todays London session we continue up, we can look to see resistance at around 1795. If this is rejected I would expect to drop back to 1770, and if this critical resistance is broken we can expect a further drop. Price action and divergence on the 15 minute rsi provide further confirmation of a likelihood of dropping to me.
Alternatively, I believe that because CPI news had expected positive sentiment, my theory is that we had a week of decline to compensate and avoid prices going higher too fast. If this is the case we can expect price to respect the outlined regression line and slowly climb to the 1830 region.
If you found this useful please shoot me a like and feel free to leave some feedback.
Trade safe!