XBRUSD Technical analysis for Friday Trading session by Guriforex:
On the 4-hour chart (H4), XBRUSD is experiencing a long-term downtrend, indicating sustained downward pressure over time. However, in recent sessions, we’ve seen a short-term bullish momentum as prices approach a significant global trendline. Despite this upward movement, a divergence has formed on the Money Flow Index (MFI), signaling caution as the indicator is in the overbought zone. This divergence suggests that the recent bullish momentum may be losing steam, and traders should be alert to potential reversals.
Bullish Scenario: Breaking the Barriers 🔼
For the bulls, the key level to watch is the trendline at 79.70, along with the 100-period moving average (MA100). If buyers can push the price above this critical resistance, it could pave the way for further gains, with the next target being 81.70. This scenario would suggest a continuation of the short-term bullish momentum and might offer opportunities for traders seeking to capitalize on upward movements. Keep an eye on volume and confirmation signals, as they could strengthen the case for this scenario.
Bearish Scenario: Testing Lower Levels 🔽
Alternatively, if the price rebounds from the trendline, it could indicate that the downtrend remains intact, bringing XBRUSD back to the support level at 76.70. This scenario would align with the long-term bearish trend, offering potential opportunities for traders focusing on short positions. Monitoring market sentiment, economic indicators, and news related to oil supply and demand can provide additional insights into this scenario’s likelihood.
Key Factors to Watch 📊
Several factors can influence XBRUSD’s price movements. Economic data releases, geopolitical developments, and changes in supply and demand dynamics are all crucial elements to monitor. Additionally, technical indicators like the Money Flow Index and moving averages can provide valuable insights into potential trend reversals or continuations.
We want to hear from you! Which side are you on—bullish or bearish? Share your insights, predictions, and strategies in the comments below.