The bullish divergence on the 1h and 4h charts have stopped the downtrend at 1.1298 which is considerably low if we are to count the pips from 1.2555 this year high. Inverted H&S developed first on the 1h chart and then on the 4h chart that propelled the price into the 1.1444 zone and could fuel for more in the upcoming days. Our mission is to identify key resistance levels and place longs and shorts to maximize our profit. For now, the bearish magnetism is minimal with RSI being above 70 on the 30m and 1h chart and regular bearish divergence in development on the 30m chart. There is little fundamental impact until 12:30 (GMT:0), August 22nd, which is also the end of the 5-3 EW cycle (high: 1.1478, low: 1.1298).
Price Action Scenario:
1) Monday, the price heads towards 1.1475 which is a 0.389 Fibo retracement (high: 1.1478, low: 1.1298) and is also the upper limit of the trend (1h chart). It is rejected and dips back into the 1.141x area which is the lower limit of the uptrend channel.
2) Tuesday, the price heads towards 1.1523 which is another key resistance level where several Fibo extensions and retracements meet. It is rejected and moves back into the 1.1475 area.
3) Wednesday, the price enters a mild bearish divergence on the 4h chart and slowly exists the uptrend channel. It retests the 1.152x area and then reverses and heads to 1.12x.
Order Entry And TP:
Monday | Long, TP 1.1475, SL 1.1391
Short, Entry 1.1475, TP1: 1.1439, TP2: 1.1418
Long, Entry 1.1418 - 1.1439, TP1: 1.1475, TP2: 1.1529
Tuesday | Short, Entry 1.1523-1.1529, TP 1.1475
Long, Entry 1.1475, TP 1.1523 (moderate risk)
Wednesday | Short, Entry 1.1475 - 1.1529, TP1: 1.1321, SL: 1.1578
Disclaimer: Please remember that the price can move beyond 1.1529 and reach 1.1540 area. The trading suggestions are based on Fibo key levels, the current uptrend channel on the 1h chart and on a unique algorithm for identifying reversals. The price will be out of the Gann box by 13:00 (GMT:0) Wednesday, 22nd of August.
Price Action Scenario:
1) Monday, the price heads towards 1.1475 which is a 0.389 Fibo retracement (high: 1.1478, low: 1.1298) and is also the upper limit of the trend (1h chart). It is rejected and dips back into the 1.141x area which is the lower limit of the uptrend channel.
2) Tuesday, the price heads towards 1.1523 which is another key resistance level where several Fibo extensions and retracements meet. It is rejected and moves back into the 1.1475 area.
3) Wednesday, the price enters a mild bearish divergence on the 4h chart and slowly exists the uptrend channel. It retests the 1.152x area and then reverses and heads to 1.12x.
Order Entry And TP:
Monday | Long, TP 1.1475, SL 1.1391
Short, Entry 1.1475, TP1: 1.1439, TP2: 1.1418
Long, Entry 1.1418 - 1.1439, TP1: 1.1475, TP2: 1.1529
Tuesday | Short, Entry 1.1523-1.1529, TP 1.1475
Long, Entry 1.1475, TP 1.1523 (moderate risk)
Wednesday | Short, Entry 1.1475 - 1.1529, TP1: 1.1321, SL: 1.1578
Disclaimer: Please remember that the price can move beyond 1.1529 and reach 1.1540 area. The trading suggestions are based on Fibo key levels, the current uptrend channel on the 1h chart and on a unique algorithm for identifying reversals. The price will be out of the Gann box by 13:00 (GMT:0) Wednesday, 22nd of August.
Comment:
The Gann Box could have been constructed by moving the 0.25 vertical line onto the start of the 2nd motive wave. That would have increased the time cycle till Thursday which was to be the last day of the 5-3 EW (high: 1.1748, low: 1.1298)
Trade active:
Opened a Buy Order at 1.1436.
Trade active:
The price moved towards Camarilla S3, 1.1416 rather than Camarilla R3 as I was suggesting in my trading plan. Nevertheless, I opened one more buy order, seeing it reached the lower limit of the channel (see chart above).
Trade active:
The price reached Camarilla S4 at 1.1394 and, hopefully, it makes a reversal. Opened one more buy order. TP 1.1440
Trade active:
TP extended to 1.1455
Trade active:
The price spiked and it reached 1.1454, now it's back to 1.1441 which is a good area to place buy orders.
Trade active:
The price reached 1.1455. I placed some sell orders, TP 1.1442
Trade active:
The price spiked to 1.1468 where I opened another sell order.
Trade active:
The price spiked to 1.1485! Now I wish I kept on buying rather on selling. I didn't expect the price to move from the lower limit of the channel to the upper limit in the same day. It almost reached WR1 at 1.1489. And Today is Monday!
Trade active:
A lot happened in the last few hours. The price spiked to 1.1540 (WR2).
Trade active:
A bearish SWAN on the 4h chart. TP1: 1.1455.
Trade active:
Triple TOP at WR2 (1.1540) on the 15m chart. If it is to move up, however, a key resistance is at 1.1575.
Trade active:
SELLING TO 1.1444.
Trade active:
The MMs ruined the bearish party. Let's see what happens next.
Trade active:
The price spiked to 1.1600 completing a cup pattern on the 4h chart.
Trade closed manually:
Now that there is a new pattern on the 4h chart, I have decided to make a new chart and a possible scenario. Stay Tuned.
