May 4th, 2021
Weekly Forecast 2 - 7 May
A clear bearish trend with strong bearish momentum is still ongoing on the Weekly time frame. We believe the price will move lower further towards the previous key swing lows.
Daily time frame shows a clear bearish trend structure creating clean lower swing highs and lower swing lows. We expect further continuation after small pullbacks.
As long as the key rejection zones hold on the 4H time frame, we expect the bears to maintain their control and push the price lower.
After an impressive bullish rally to the upside on the daily followed by a clear bearish divergence on the moving averages of the MACD, we assume that the trend has stopped at the moment and that we are now in a middle of a corrective phase. As long as the key rejection zone (marked in blue) holds we expect to see a bearish turn around.
On the H4 chart, price is building up a bearish divergence based on the MACD histogram. As long as the key rejection zone and the 0.75 psychological level hold, we expect to see the sellers taking the control again.
After a strong bullish trend, price is now facing a massive resistance zone around 0.80 psychological level on the weekly chart. Following this we have a bearish divergence based on the MACD histogram. So, technically we are expecting bearish corrective movement to happen here.
On the daily time frame a clear bullish trend stopped with a bearish divergence on the moving averages of the MACD and we can see the last swing low in the uptrend was broken to create lower lows. This makes us believe that the trend has changed from bullish to bearish corrective phase. Now the price is retesting the key resistance zone and as long as the key resistance zone holds, we expect to see another leg to the downside.
Also we have a potential head and shoulders pattern developing at the end of the bullish trend. So we may likely assume that the price is going to test the neckline and if it breaks below then the price might go even for deeper correction down.