From this Heikin-Ashi candle 4-hour chart, we can see that the price had been through a long downward trend, which had lasted for almost one month. This is a comparatively steady and long trend, there was neither a steeper angle nor a crazy jump, however, it is slowing down. As can be seen, recently, the price started to fluctuate and hover around 1.207 and stopped going down.
The Fibonacci retracement is built based on the last downward period. From the Fibonacci lines, we can see that the price is touching the 23.6% Fibonacci level, a potential resistance level. We should pay attention that it may not be able to go higher. Also, the MFI has been at a high level for a while, since the price started to fluctuate. This could mean that this is the highest the price can go for now, there is no bullish strength to push it higher.
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forex, trading conditions, technical analysis, fundamental analysis