- BCH/USD extends sideways trade, struggles to break above 110-EMA.
- The pair stalled upside below 1600 mark and has slipped lower from 2-month highs at 1567.
- Price action holds above daily cloud and technical studies support upside.
- We evidence a 'Shooting Star' formation on the daily charts which raises scope for weakness.
- That said, breakout above 100-EMA negates bearish bias and raises scope for test of 1700 levels.
- 5-DMA offers immediate support at 1395 ahead of daily cloud at 1135. Break below cloud will we drag lower.
- Major resistance lies at 110-EMA at 1392 ahead of 23.6% Fib at 1473. Decisive breakout at 110-EMA required for further gains.
Support levels - 1395 (5-DMA), 1135 (cloud top), 1073 (21-EMA)
Resistance levels - 1473 (23.6% Fib), 1567 (April 24 high), 1644 (Dec 18 high)
Recommendation: Watch out for breakout at 110-EMA to go long, target 1475/ 1570/ 1640
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