<p>On the daily chart below, we can
see that the broken <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> is still acting as support for
the market. The market sold into it last Friday as the Silicon Valley Bank
failed and triggered a widespread risk aversion which weighed on risk assets. </p><p>On Monday, we got another sell
into the trendline as the market was still uncertain on the banking sector but
rebounded as everything calmed down. </p><p>Yesterday, we got yet another selloff
into the trendline as the fear spread to Europe with Credit Suisse bank under
stress, but later on the market rebounded as the SNB offered support for the
bank. </p><p>All of this just shows that the
trendline support is very strong and it’s something that the sellers will need
to break to get conviction on more downside and make the buyers fold. </p><p>In the 4
hour chart below, we can see that now we have another range between the
trendline support and the 3971 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> where we can also find the 50
and 61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> levels. The buyers will need to break above that
resistance zone to start getting some conviction on an extension to the upside,
but the downward trendline could be another place where the sellers may lean
on. </p><p>In the 1
hour chart below, we can see more closely the current range. Looking ahead we
have the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>FOMC meeting</a> next week where the Fed is
expected to hike by 25 bps. The market may keep ranging until then. </p><p>Generally,
it’s better to sit out when the market starts to range and wait for a breakout
or a catalyst strong enough that can give the necessary momentum to break out
of such ranges. </p>
see that the broken <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> is still acting as support for
the market. The market sold into it last Friday as the Silicon Valley Bank
failed and triggered a widespread risk aversion which weighed on risk assets. </p><p>On Monday, we got another sell
into the trendline as the market was still uncertain on the banking sector but
rebounded as everything calmed down. </p><p>Yesterday, we got yet another selloff
into the trendline as the fear spread to Europe with Credit Suisse bank under
stress, but later on the market rebounded as the SNB offered support for the
bank. </p><p>All of this just shows that the
trendline support is very strong and it’s something that the sellers will need
to break to get conviction on more downside and make the buyers fold. </p><p>In the 4
hour chart below, we can see that now we have another range between the
trendline support and the 3971 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> where we can also find the 50
and 61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> levels. The buyers will need to break above that
resistance zone to start getting some conviction on an extension to the upside,
but the downward trendline could be another place where the sellers may lean
on. </p><p>In the 1
hour chart below, we can see more closely the current range. Looking ahead we
have the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>FOMC meeting</a> next week where the Fed is
expected to hike by 25 bps. The market may keep ranging until then. </p><p>Generally,
it’s better to sit out when the market starts to range and wait for a breakout
or a catalyst strong enough that can give the necessary momentum to break out
of such ranges. </p>
This article was written by ForexLive at www.forexlive.com.