Do we expect more selling from here again? Watching a few key price levels for now….
From yesterday call, we have indeed seen a clear breakdown from the 0.400 psychological support level with it pulling further away from it. It is back to the 0.33 – 0.34 support now where we may experience some short covering for now. Those that have shorted yesterday can also consider taking some profit at these levels and lower your buy stop loss to protect profits. Any move below 0.33 can also see it trade towards 0.30 next to attempt a further breakdown then to 0.27.
We have seen the breakdown below the 0.400 psychological support today on above average volume. As mentioned, note that a close below can be a confirmation with more weakness ahead with target to 0.34 then 0.30. MACD has turned down and back below the zero mark where we can expect some selling momentum especially if it stays below 0.400 now. CFD SELL can be used to ride any retracement lower with buy stop loss at 0.415.