It is very important to read and understand the bigger picture of a market. It is not funny to stick around with a piece of a puzzle. You will play the whole game and have much more fun with all pieces altogether to create the big picture. So here we go again with the monthly macro perspective as usual. We can see a price channel, the installed Fibanocci retracement tool and a lovely bracket area on this timeframe. The market rejected the 50% Fibanocci level that was confluent with the price channel's high. Currently the market is testing the lower area of this price channel that is actually confluent with the drawn bracket area high. A break should lead us to some lower prices again.
We keep it simple with the weekly bars chart. The market broke out of its actual balance area and moved into the previous micro bracket area with support at the balance area's bottom. The previous week was an inside bar, so we have a rotational balanced market here.
Looking at the daily bars chart, we can see the support at the 61.8% Fibanocci level and the current balanced behavior with a the recent test of the bracket low. With this information the market could see some higher prices to test the daily bracket area high for example. Actually there is also a wedge to keep an eye on.
With installed EMAs on the weekly timeframe, we can see that the market is trading below all six EMAs. Looking at the daily EMAs, we can see today's break of the first two short-term trend EMAs, so a test of the 20EMA should be possible.
Weekly EMAs
Daily EMAs
We'll see how the market will react to the mentioned levels. Stay open minded as everything can happen.
Stay happy!
