Price Close to Critical Monthly Confluence Support
Price is just shy of trading the lower Kumo Cloud support
at 0,6866 and the 50% fib of 2009-2014 swing and the
Yearly S2 at 0,6850. Missed it by 10-20 pips. One may
expect a proper test of this level before any support will be found.
Retail crowd is still net long (2,7 and last week 4,0) which suggest
further losses. But extreme sentiments often precurse important
turning points. Still, it is an impressive confluence of support
levels on monthly timeframe which should at least give
some pause to the current drop. If not, and we see a monthly
close below these levels, it may initiate a sharp drop next
month towards 0,66 (SMA200 and 2010 low) and 0,64 (61,8 fib)
Note: Crowd is Net long and not short as the chart text says.
at 0,6866 and the 50% fib of 2009-2014 swing and the
Yearly S2 at 0,6850. Missed it by 10-20 pips. One may
expect a proper test of this level before any support will be found.
Retail crowd is still net long (2,7 and last week 4,0) which suggest
further losses. But extreme sentiments often precurse important
turning points. Still, it is an impressive confluence of support
levels on monthly timeframe which should at least give
some pause to the current drop. If not, and we see a monthly
close below these levels, it may initiate a sharp drop next
month towards 0,66 (SMA200 and 2010 low) and 0,64 (61,8 fib)
Note: Crowd is Net long and not short as the chart text says.