<p>On the daily chart below, we can
safely say that we got a successful breakout of the falling channel. The whole
channel was <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-macd-20220427/“>MACD</a> and it’s likely that we may see
a big correction all the way up to the top of the channel at 0.96. </p><p>Before that though, the buyers
had to fight with a break of the 0.9287 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> and are now struggling at the
0.9400 handle. If they manage to firmly break the 0.94 level, then the 0.96
handle will the next target. The <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> switched to the upside signalling a change in trend and will act as <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> for the buyers. </p><p>On the 4 hour chart below, we can
see that the buyers will have two strong support areas for another push to the
upside. The first comes at the orange <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> where the confluence with the
38.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level will give them a good spot to lean on with
defined risk. </p><p>In case the sellers manage to
break below the trendline, the next support will be at the 0.9287 level which
acted as strong resistance prior to the breakout. The buyers there will have
also support from the blue trendline and the daily red long period moving
average. </p><p>On the 1 hour chart below, we can
see a possible <a target=“_blank“ href=“https://www.forexlive.com/Education/chart-patterns-guide-20220125/“>double
top</a> pattern
right at the 0.94 handle. The neckline coincides with the 38.2% Fibonacci
retracement level, so a break below would give the sellers conviction for a
deeper correction to the 0.9287 level as it would be the measured target of the
chart pattern. </p><p>Today we have the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>ISM Manufacturing PMI</a> and this is generally a market
moving report. Since the “good news is bad news” now due to the market
repricing higher interest rates from the Fed, we should see a rally in case the
data beats expectations and a bigger fall in case we see a miss.</p>
safely say that we got a successful breakout of the falling channel. The whole
channel was <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-macd-20220427/“>MACD</a> and it’s likely that we may see
a big correction all the way up to the top of the channel at 0.96. </p><p>Before that though, the buyers
had to fight with a break of the 0.9287 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> and are now struggling at the
0.9400 handle. If they manage to firmly break the 0.94 level, then the 0.96
handle will the next target. The <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> switched to the upside signalling a change in trend and will act as <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> for the buyers. </p><p>On the 4 hour chart below, we can
see that the buyers will have two strong support areas for another push to the
upside. The first comes at the orange <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> where the confluence with the
38.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level will give them a good spot to lean on with
defined risk. </p><p>In case the sellers manage to
break below the trendline, the next support will be at the 0.9287 level which
acted as strong resistance prior to the breakout. The buyers there will have
also support from the blue trendline and the daily red long period moving
average. </p><p>On the 1 hour chart below, we can
see a possible <a target=“_blank“ href=“https://www.forexlive.com/Education/chart-patterns-guide-20220125/“>double
top</a> pattern
right at the 0.94 handle. The neckline coincides with the 38.2% Fibonacci
retracement level, so a break below would give the sellers conviction for a
deeper correction to the 0.9287 level as it would be the measured target of the
chart pattern. </p><p>Today we have the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>ISM Manufacturing PMI</a> and this is generally a market
moving report. Since the “good news is bad news” now due to the market
repricing higher interest rates from the Fed, we should see a rally in case the
data beats expectations and a bigger fall in case we see a miss.</p>
This article was written by ForexLive at www.forexlive.com.