The 1st downtrend line was broken, and the price could reach the main resistance zone. It is formed by another downtrend line, 1.04500 resistance level, and SMA50. The market must have solid reasons for breaking this strong resistance. But if it can be done, there will be SMA100 which also act as a strong resistance line.
It looks like the downward movement will be more simple. If there are signals from indicators confirming the price reversal, it will be possible to open short trades with stop orders above the local swing high and profit targets at the lower support levels. Short trades can be opened based on the daily and hourly timeframes.
RSI is going to confirm the price reversal, but this signal will be out of the overbought zone. As a result, it won't be so strong as it could be. MACD still support the bullish movement. DMI is bullish, but ADX line falls telling us that buyers become weaker. IF the price tries to move upward, it will be possible to get a false breakout.
It looks like the downward movement will be more simple. If there are signals from indicators confirming the price reversal, it will be possible to open short trades with stop orders above the local swing high and profit targets at the lower support levels. Short trades can be opened based on the daily and hourly timeframes.
RSI is going to confirm the price reversal, but this signal will be out of the overbought zone. As a result, it won't be so strong as it could be. MACD still support the bullish movement. DMI is bullish, but ADX line falls telling us that buyers become weaker. IF the price tries to move upward, it will be possible to get a false breakout.
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