The trend reversal opportunity I have been waiting 3 weeks for has finally arrived. Ever since this pair dropped into the 61.8% Fibonacci region I have waiting for a support key level to hold it up subsequently moving price action bullish. This level turned out to be the Monthly Key Level of 0.76500. Price first tested this level on the 29th March, creating a bullish engulfing pattern. On the 2nd April price again retested, creating a morning star pattern on the H4 timeframe. Price action hit the monthly resistance of 0.77000 a number of times, breaking out once to retest the descending bearish trend line. This was a important breakout as it hinted future price action. In the second week of April price gapped up 7.5 pips and created a strong hammer bullish candle on H4. Price then retested the level of 0.76500, (slightly above by 2 pips), creating a hammer candle on H4 and a bullish engulfing on H1. The following price action up until the point of typing looks to be heavily bullish with a breakout of 0.77 looking very likely. I found an entry at 0.77040. This was 54 pips above my intended entry point, psychological factors were the reason for this misjudgment. I set a 25 pip stop loss with a take profit at 0.80635, the 88.6% Fibonacci region for the trend reversal. This gives a very healthy 14.3/1 Risk Reward.
An update for this trade will come in the following days...
Trade moving bullish as expected, currently around 90 pips up. A bullish daily hammer candle pinning off 0.77500 and the following bullish engulfing can be impetus for future bullish movement. A good start!