<p>On the daily chart below, we can
see that the price has failed at the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 1681 as <a target=“_blank“ href=“https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-bullard-finally-cracks-the-markets-resolve-20230216/“>Fed’s
Bullard</a> (hawkish, non-voter) signalled a possible 50 bps at the March meeting
and a higher terminal rate needed than the one projected in December 2022. </p><p>We can also see that the price
has been <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>diverging</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-relative-strength-index-rsi-20220426/“>RSI</a> at the resistance, so the
momentum was not there and since the fundamentals are now against further
upside, it’s unlikely to see higher highs. </p><p>On the 4 hour chart below, we can
see that the buyers will need to hold any of the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> levels with the 61.8% having more strength as
there’s also a previous resistance that now may have turned <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a>. Given the fundamentals though,
we should see sellers in control for now.</p><p>On the 1 hour chart below, we
have a textbook divergence setup with a king’s crown pattern. What you will
generally see is the price making a higher high that is divergent with the
momentum indicator, in this case the RSI. Then you need to wait for the price
to break the low giving the first signal of a change in trend. </p><p>Finally, you wait for the price
to pullback to a Fibonacci retracement level, in this case we can see
confluence of the low with the 38.2% level and the red long period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a>. This should be the entry for sellers. </p><p>The target is generally one of
the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-utilizing-fibonacci-extensions-20220422/“>Fibonacci
extension</a> levels, so either 127.2% or 161.8%. Here we can see that 161.8% has
more value as there’s also previous resistance on the left.</p>
see that the price has failed at the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 1681 as <a target=“_blank“ href=“https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-bullard-finally-cracks-the-markets-resolve-20230216/“>Fed’s
Bullard</a> (hawkish, non-voter) signalled a possible 50 bps at the March meeting
and a higher terminal rate needed than the one projected in December 2022. </p><p>We can also see that the price
has been <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>diverging</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-relative-strength-index-rsi-20220426/“>RSI</a> at the resistance, so the
momentum was not there and since the fundamentals are now against further
upside, it’s unlikely to see higher highs. </p><p>On the 4 hour chart below, we can
see that the buyers will need to hold any of the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> levels with the 61.8% having more strength as
there’s also a previous resistance that now may have turned <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a>. Given the fundamentals though,
we should see sellers in control for now.</p><p>On the 1 hour chart below, we
have a textbook divergence setup with a king’s crown pattern. What you will
generally see is the price making a higher high that is divergent with the
momentum indicator, in this case the RSI. Then you need to wait for the price
to break the low giving the first signal of a change in trend. </p><p>Finally, you wait for the price
to pullback to a Fibonacci retracement level, in this case we can see
confluence of the low with the 38.2% level and the red long period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a>. This should be the entry for sellers. </p><p>The target is generally one of
the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-utilizing-fibonacci-extensions-20220422/“>Fibonacci
extension</a> levels, so either 127.2% or 161.8%. Here we can see that 161.8% has
more value as there’s also previous resistance on the left.</p>
This article was written by ForexLive at www.forexlive.com.