1-Hour Analysis Conversely, the 1-hour chart indicates exhaustion of consolidation following a highly prolonged upthrust from $1.3978 to $1.4069. The Stochastic Oscillator (14,3,3) fell from the overbought level, at around 46, signaling declining momentum as speculators unwind longs. The ADX (14) prints around 21, which confirms a lack of strong directional trend — the first warning that compression in volatility will usher in a decisive move soon. Price structure has fallen into a near-term $1.4015 support-$1.4078 resistance zone, with alternate engulfing candles indicating indecision. While the Stochastic slope remains to the downside, every dip around $1.4020 is met with steep rejections, demonstrating that weakness continues to be appreciated by buyers. Sellers are firm at $1.4065, though, utilizing liquidity spikes to tap strength. This is emotional exhaustion — paused breakout sellers at the tops and paused buyers at the bottom. The flat reading of the ADX indicates this hesitancy, typically leading to expansion after one side capitulates. In contrast, sentiment is subtly aligned. Each breakout attempt above $1.4070 is met by aggressive short covering followed by short-term withdrawal, characteristic of manipulated sweeps of liquidity. The recent formation is that of a topping compression — tension buildup without clear resolution. A Stochastic bullish cross confirmation in the mid-range would initiate a momentum rally to $1.4105, while a drop below 30 would usher in fresh bearish pressure targeting $1.3989. Finally, the bias is bearish-to-neutral, depending on Stochastic action. Repeated closes below $1.4010 will validate bear supremacy, while staying above $1.4060 maintains a bullish view. ADX buildup above 25 will be the trigger indicator of the eventual winner of the next bout of volatility. In between, sloppy movement and emotional faux pas can be expected from players responding to each spurt of momentum.
