18.05.202113:02 Forex Analysis & Reviews: Technical analysis of the BCN/USD pair

BCN/USD

A fairly deep decline occurred during the previous week, which resulted in an encounter with a strengthened support area, and a slowdown on yesterday's daily chart. The formation of a rebound from the reached support levels will contribute to the retest of the previously broken levels of the daily cross - 1159.19 (medium-term trend) - 1312.12 (short-term trend). If the bulls manage to regain the support of the daily Ichimoku gold cross, then another test of the high (1638.69) will become relevant again, with the subsequent possibility of forming a new extremum. But if the bulls fail to complete the current downward correction, and the encountered supports 1040 - 1064 - 1109 (Ichimoku levels of different timeframes) are broken, then the development of a downward movement can be expected. The next pivot points are the levels of a fairly wide support zone, the first and nearest of them can be noted at 945 – 919 – 886.

The main advantage in the smaller time frames currently belongs to the bears. Nevertheless, the pair has been in the correction zone for quite some time, after managing to take the central pivot level (1087). In terms of the development of an upward correction, the main interest is now aimed at resisting the weekly long-term trend (1195). A consolidation above which will change the current balance of forces on the hourly chart. After that, the upward pivots will be 1270 (R2) and 1372 (R3). But in the event that bearish activity returns, the support of the classic pivot levels can be noted at 1006 - 904 - 823 today.

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Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart are used in the technical analysis of this instrument.