In our last analysis on XRP/USD we noted the increased chances of a reversal and we mentioned that it was justified for XRP/USD to turn lower towards $1.36 or even $1.18. Today price has reached the first pull back target as it made a low at $1.31 area. Price has stopped the decline at the 38% Fibonacci retracement of the latest upward move. A bounce back to $1.45-$1.50 is possible, but as long as price is below $1.66, there is still chance of a move towards $1.18.
Red rectangle -major Fibonacci resistance
Green rectangle – major horizontal support
Blue lines – Fibonacci retracement levels
XRP/USD is trading now at $1.40. Price has started making lower lows and lower highs after the rejection at $1,60-$1.70 resistance. Bulls need to recapture this level in order to hope for a move to new short-term highs above $1.97. Otherwise there is danger of seeing price towards $1 and even lower. Support is found now at the next Fibonacci retracement level at $1.27 but the most important Fibonacci retracement level is the 61.8% at $1.18. Resistance is found at $1.49 and next at $1.55. I expect price to make a short-term bounce and continue lower towards $1.18.
The material has been provided by InstaForex Company – www.instaforex.com