In the daily chart below, we can see that after breaking the key support level of 11492, the sellers failed to maintain control and the buyers came with a vengeance pushing the price above the level. . The price is currently at the red long-term moving average, which acts as resistance.
Friday’s rally is seen as pressure as the ISM Services PMI beat expectations and should have been bearish for the market as the good news is now being seen as bad news due to the interest rate revaluation. high interest.
In the 4-hour chart below, we can see that buyers struggle with higher prices before giving more confidence to higher levels. The price has risen to the resistance zone with the addition of the 50% Fibonacci retracement level.
Friday’s strong rally also broke above the short-term blue moving average price. In such cases, the price usually consolidates or pulls back before the next move.
We can take a closer look at the short-term price action on the hourly chart below. We see that it is diverging with the MACD as the price breaks the 11492 support. This is a sign of loss of momentum and usually means failure.
Moving averages during this period have moved higher, and conservative sellers may want to wait for them to drop again before considering new positions. Aggressive sellers may begin to rally at this strong resistance area. A break above should give buyers control so sellers can fold quickly.
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