XRPUSD is under pressure for a third straight week after the big price jump in July towards $0.93. At that time we noted that despite the bullish signal with the break above the yellow rectangle area, it was imperative for the bigger trend for price to break the red downward sloping major trend line resistance. The long upper tail in the weekly candlestick at the beginning of July that reached $0.93 suggested weakness. Price is vulnerable to a move towards the yellow rectangle and why not the blue support trend line. If price eventually breaks below the blue support trend line, then we should not be surprised to see new lows below $0.30. At $0.63 we find the 61.8% Fibonacci retracement support of the big weekly candlestick that reached $0.93. It is important for bulls to defend this level. Failure to hold above it will open the way for a move towards $0.55.
The material has been provided by InstaForex Company – www.instaforex.com
Yellow rectangle – support (previous resistance)
Blue line – support trend line
Re line- major resistance trend line
XRPUSD is under pressure for a third straight week after the big price jump in July towards $0.93. At that time we noted that despite the bullish signal with the break above the yellow rectangle area, it was imperative for the bigger trend for price to break the red downward sloping major trend line resistance. The long upper tail in the weekly candlestick at the beginning of July that reached $0.93 suggested weakness. Price is vulnerable to a move towards the yellow rectangle and why not the blue support trend line. If price eventually breaks below the blue support trend line, then we should not be surprised to see new lows below $0.30. At $0.63 we find the 61.8% Fibonacci retracement support of the big weekly candlestick that reached $0.93. It is important for bulls to defend this level. Failure to hold above it will open the way for a move towards $0.55.
The material has been provided by InstaForex Company – www.instaforex.com
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