I marked few important price actions. First harmonic
formation appeared at the end of the March. There is a rule where 61.8% retracement
is corresponding with 1.618% and 32.8% retracement is corresponding with 1.328% which gives us perfect ABCD
formation where AB = CD. Another signal for further bullish
movement is fact that pair is trading below 200 EMA
. I think that doji
candle created 3rd of April gives us false bullish
signal. This lowest low from 3rd of April in my opinion will be beaten by another lowest low.
I set SL close to the EMA
but this is risky I would prefer to set SL just above 0.70000(it is marked on the chart)
I would wait for better opportunity then this one as the risk ratio is not so impressive and I'm not really sure where should TP area be. I’m pretty sure that it will go lower than the Doji
form 3rd but I'm not sure how deep pair might go.