High risk high reward set-upSKY / U.S. DollarGEMINI:SKYUSDhilmiyus1. Current Market Structure Trend: The asset has been in a downtrend, evidenced by the lower highs and lower lows over the past few weeks. The price is currently trading around $0.0500. Support Zone: The price recently found a floor at the 0.0474 level (marked as the 0 Fibonacci level). The current price action suggests a period of consolidation or a potential bottoming formation. Indicators: Ichimoku Elements: The price is currently below the Tenkan-Sen ($0.0579) and Kijun-Sen ($0.0612) lines. In Ichimoku theory, price below these lines typically indicates bearish momentum, meaning the price needs to cross above them to confirm a reversal. Bollinger Bands: The bands appear to be narrowing slightly, which often precedes a period of high volatility (a breakout or breakdown). 2. The "Red Line" Projection The red hand-drawn line on your chart represents a classic Reversal Scenario, specifically resembling a Double Bottom or a complex Inverse Head and Shoulders pattern. Here is the breakdown of that prediction: Phase 1: The Retest (Current to Short Term) The projection anticipates the price might dip slightly one more time to retest the recent low near $0.0474. This would create the second "leg" of a "W" pattern (Double Bottom), confirming strong support at that level. Phase 2: The Breakout After the retest, the projection predicts a sharp rally upward, breaking past the initial resistance at the 0.236 Fib ($0.0523) and the 0.382 Fib ($0.0554). Phase 3: The Golden Ratio Challenge The rally is expected to pause or face resistance at the 0.618 Fib level ($0.0603). In technical analysis, this is often called the "Golden Pocket." A rejection here is common, hence the small dip drawn in the red line before the continuation. Phase 4: The Extension (Target) The final leg of the drawing predicts a massive breakout to the 1.618 Fibonacci Extension at $0.0814. 3. Key Technical Levels to Watch Critical Support0.0474The recent low. If the price breaks below this, the bullish projection is invalidated, and the price could seek lower lows. Resistance 10.0579Tenkan-Sen / 0.5 Fib. A crucial mid-point resistance. Resistance 20.0612Kijun-Sen / 0.618 Fib. This is the "trend flipper." Breaking this confirms a bullish trend reversal. Target0.08141.618 Extension. The ultimate profit target based on this specific Fib setup. 4. Summary The market is currently bearish, but the drawing is betting on a bottom formation. Bullish Signal: Watch for a daily candle close above $0.053 (the blue Moving Average line). This would start to validate the upward move. Bearish Signal: A daily close below $0.0470 would invalidate the support and likely lead to a further drop.