The price reached the uptrend line. From the higher timeframe, this zone is also supported by SMA200. We have a strong support zone where the market can give us interesting buy opportunities.
We can see that the price broke the local downtrend line. It is the signal that the downtrend is not so strong now. The 2nd downtrend line based on new swing highs can be used as the signal line. If the price breaks it too, it will be possible to open long positions based on a breakout signal. As the alternative, a confirmed reversal signal from the uptrend line will be good for buying too. But this trading signal will be with higher risk.
For both types of buy signals, stop-loss orders must be placed below the uptrend line and the local swing low. Profit targets should be placed at 1.75500 and 1.77000 resistance levels.
Also, there is another bullish signal. It is based on a double bullish divergence, which gives us a trend reversal signal.
We have solid bullish signals and good buy opportunities. But will the market move only upward? We will see because the market can have its own plan for today. Fundamental news also can push the price downward. The breakout below the support zone is possible. That's why we have to use stop-orders below the support zone and exit from the market in time. But even if the market continues falling, it will become more oversold and good for buying.
I remind you, it is only my personal opinion and a trading idea based on it. If you have your own trading plan, it is better to follow it.
Comment
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The market broke the support zone and confirmed the bearish trend. The reversal buy signal could be closed by stop, the breakout buy signal was not activated.
The perfect plan did not match the market plan. Sometimes it can be like this too. That's why we use stop orders.
@MicKi, I use Ultimate Oscillator with standard settings to look for divergence and it pretty much shows the same negative div. from your RSI.
MicKi
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@DLavrov, ok, sorry. I just realised you mean a pullback to 1.7550. I totally agree on that, I expect a pullback to that area before it moves down again also creating a kind of H&S.
Apologies.
DLavrov
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@MicKi, in the long run based on the daily timeframe - ok, it can be like this. For the short term, both direction are possible. Thanks for sharing your opinion!
Russslayer
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@DLavrov Thank you for sharing this setup.it helped me with my setup to take profit. I was short. In longer term I am still bearish.but as you said we have to wait for fundamental Events happening around this month.