We can clearly see that price has recently touched the 0.5 Fibonacci retracement level and subsequently pulled back to the 0.7 region. What's particularly interesting to me is that the liquidity within that grey box below hasn't been swept yet.
My current conviction is that price is likely headed down to that grey zone to collect the pending liquidity. This area around the $0.66 - $0.70 range looks like a prime target for a retest, potentially offering a good confluence for a bounce or at least a significant reaction. We'll need to watch for confirmation, but the setup suggests a continuation lower in the short term to tap into that unmitigated demand.
My current conviction is that price is likely headed down to that grey zone to collect the pending liquidity. This area around the $0.66 - $0.70 range looks like a prime target for a retest, potentially offering a good confluence for a bounce or at least a significant reaction. We'll need to watch for confirmation, but the setup suggests a continuation lower in the short term to tap into that unmitigated demand.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.