TECHNICAL ANALYSIS
On the daily chart, We observe a robust resistance area along the downward trendline, where we also encounter the convergence of the prior swing high and the 38.2% Fibonacci retracement level. This zone presents an opportunity for sellers to establish a more favorable risk-to-reward ratio should the price retrace into this region. Conversely, for buyers to shift the prevailing trend and aim for higher price levels, a breakout above the trendline is essential. On the 1-hour, a noticeable divergence has emerged with the MACD indicator, typically indicating a decline in momentum that is often followed by either pullbacks or reversals. In this particular instance, we anticipate a pullback towards the 1875 resistance zone, at which point sellers are likely to intervene, placing their risk management above the trendline as they aim for the 1805 level. Conversely, buyers are expected to enter the market in this vicinity, establishing a clear risk threshold below the recent low, with initial targets set at the 1875 resistance and subsequent ambitions for a breakout beyond the trendline.
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