1618 Fibonacci Extension
SPX in the key areaSPX enters the key area for its nearest future as the price came up to 0.764 fib ret of the last downward move and the 1.618 extension of the AB leg in the potential structure pattern. Look for the signs of weakness on 1H chart (divergence on RSI or price channel breakout) it may be goog risk reward short trade with stops above 2120 and potential targets 1945-1920. Market is significantly overbought on the daily RSI(7).
NZD/USD 60 min Bear One-to-One 1.618 completionThere is a one-to-one bull flag completion at the 1.618 extension of the move. The .6720-.6740 level has acted as resistance. Price could potential reject this level again. Watch the price action. Good luck trading boys and girls.
Short term short trade on EUR/GBPUsing divergence , Stochastic bearish this time, a temporary short position has lined up on the 4 hour time frame on EUR/GBP. Price has given an inside bar below resistance and the 1.618 Fibonacci extension level . Targets may be placed at previous support where price could go to.
Golden proportion seems to be a very strong resistance.If you are seeking the answer why has the SPX500 stopped at this strange area and stucked, I got the answer :)
The golden number is a key this time as almost always in technical analysis. This two lines corresponds with 1.618 of two different market moves:
2120 is the level of 1.618 extension of the previous bull run ended in late 2007
2072 is the level of 1.618 extension of the last bear run started right after.
So what?
Notice that 2120 is a very strong resistance tested many times and it is placed exactly on 1.618 of the last bull run. This place is highly probable to be the top of the current 7 years bull run in my opinion. But if resistance will not hold the price this level will be very strong support for prices to attack next important 1.618 level around 2300.
Potential pull back area for "Dixie"On the monthly chart, the US Dollar Index has soared without a pull back since May 2014 leaving questions for a possible future retracement. Approaching the 1.618 Fibonacci extension (~101) and previous key resistance at 103 is a price region where the effect on price action behaviour will be of significant interest from a technical perspective to witness a potential pullback. Until then, Dixie continues to cycle offering short to medium-term long opportunities on the daily time frame.
