The pair experienced a strong bearish movement to break the trendline and reach the monthly support level. It now seems to be forming a double bottom on the lower tf before pulling back to retest the broken trendline resistance.
This retracement is a common price behavior following a trendline break and offers traders a valuable opportunity to enter the market at a favorable price point.
What makes this trading setup even more compelling is the confluence with the monthly pivot point. The broken trendline coincides with the monthly pivot, which often acts as a critical level in many trading strategies. This confluence adds further weight to the potential significance of this area as a resistance zone.
Given this setup, we may consider adding buy positions with targets at the broken trendline, coinciding with the monthly pivot, after which we can join the bearish sentiment, with the expectation that the market may continue its downward movement.
This retracement is a common price behavior following a trendline break and offers traders a valuable opportunity to enter the market at a favorable price point.
What makes this trading setup even more compelling is the confluence with the monthly pivot point. The broken trendline coincides with the monthly pivot, which often acts as a critical level in many trading strategies. This confluence adds further weight to the potential significance of this area as a resistance zone.
Given this setup, we may consider adding buy positions with targets at the broken trendline, coinciding with the monthly pivot, after which we can join the bearish sentiment, with the expectation that the market may continue its downward movement.
Trade closed: target reached
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