USD/BRL Trend
Eddie Tofpik | Feb 02, 2018 07:27
Conflicting actions with no resolution! Last week we had a Key Reversal Down on the Weekly Chart. We closed multiple times below the old H+S Neckline (currently 3.1500) which should have prompted further attempts lower. However, that did not happen. Instead we have turned around now and have a monthly close back over the Neckline. The action on the last day of January was interesting in its dichotomy in that we had both a Daily KR Up but at the same time we had an Indecisive Doji Cross. We've so far not managed to reach the Long MA resistance (currently 3.2162) nor even attempt the 50% Fib resistances at 3.2233 and 3.2336. Yet at this same time we've not gone back below the Neckline but rather chosen to stay in some weird limbo state.
Maybe we are indeed moving to the Third Way of Markets...Neutral! It would tie in with the mixed two up/two down of the MAs...that's why I've moved the bullet point above into Neutral. What I can say this time is that we've been a Bearish market for a while and we've stopped this week; we've stopped and turned around enough to have some thoughts as to whether we'll test the main supports at 3.1500 and 3.1195 or the main resistances at 3.2162, 3.2233 and 3.2336.
Support outside of these levels is currently at 3.1453, 3.1344, 3.1130, 3.1070 and 3.0785.
Resistance apart from the previously mentioned levels is currently at 3.1795, 3.1950, 3.2066, 3.2174, 3.2304 and 3.2440.
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