Good Bearish Signal: The price corrected upwards, but is still quite far away from the resistance level, so that it is still unprofitable to enter the market now. However, given the previous sharp drop, we still may prefer a scenario of opening sales. Volume Zones: It is necessary to point out the level of resistance 1.1266 – 1.1276. The large volume is concentrated inside this area, therefore we may assume that the smart money has positions in it, which enhances its importance. Sentiment: This indicator shows that 76% retails traders are in long positions, which is a good additional signal for us (trading against the "crowd"). https://imagizer.imageshack.com/img924/2725/Po3TPq.png Consider Short Positions: Given all these factors, we may consider short positions. We may enter the market after a farther smooth upward correction, in order to get a more profitable entry point. A stop loss may be placed above the new resistance. Profit Potential: More than 100 pips.
To learn more about order flow based volume trading, sentiment analysis and trading against the retail crowd see the educational article below -