Price action is currently in a strong , where the market turned heavily the last time reached these highs and the situation appears to be the same today. The overall market has been in a corrective state and looks like a potential triangle formation in the process of forming, I will be watching this closely to see how it plays out.
From a weekly perspective we’re seeing where the market has broke above it’s resistance structure followed by a retest of the previous resistance now acting as market support. Based on the higher timeframe showing we are also in a strong on the monthly, I would need to see price closing below weekly support to provide confirmation short.
A closer look on the has put in context a lot of what was identified on the higher timeframes. We are seeing a market sentiments where the market broke below daily support, with a retest of that previous support (now resistance) which also coincides with the 50% . This current market structure in addition to price action from the monthly and weekly would make a short trade the direction with least resistance.
My overall bias is still SHORT and to see price action hitting $7500.00 I've labeled the areas based on what I will be anticipating.
An entry will be taken only if all rules of my strategy are satisfied.
Add this pair to your watchlist and see if the rules of your strategy provides an entry.
Like and Comment your thoughts . All feedbacks are welcome.
If you are new to FOREX trading, here are the definition for words you may seen mentioned above.
Price Action: Change in the price value of a traded instrument whether Forex, or Indices.
Market Structure: This is classified as any group of placed together with the use of Support, Resistance and . once grouped they would provide a pattern to indicate a possible movement in price action.
Support: Areas in the market where price tends to reverse after a sell off (lower price action)
Resistance: Areas in the market where price tends stop, pause or reverse after bull run (higher price action)
Uptrend: price action in the market creating a series of high highs and higher lows.
Downtrend: price action creating a series of lower lows and lower highs Long: Taking a position to buy the base currency
Short: Taking a position to sell the base currency.