We are yet to find an avenue for Bearish confirmation since my last publication on this pair as the price continues to find a higher high (see link below for reference purposes). Continuous rejection of the $1.22500 level since mid-May 2021 is a clue pointing at the possibility of a bearish momentum building up at this juncture in the market.
The prospect of positive clues on Federal Reserve monetary policy and weakness in the euro appears to be restoring some confidence back for the Greenback in the coming week(s) as I am looking forward to a Breakdown/Retest of Neckline which is also a Key level @ $1.21200 for confirmation.
Tendency: Downtrend (Bearish)
Structure: Breakdown | Supply & Demand | Trendline
Observation: i. The line drawn under pivot lows is a visual representation of the prevailing direction and speed of price action in the last couple of months.
ii. We have witnessed a sharp rise in the value of the Euro since the beginning of April 2021 and the multiple rejections at the $1.22500 area reveal a decline in Bullish momentum as Sellers appear to be on the verge of dictating the direction of price action in the nearest future.
iii. Breakdown of Trendline on the 3rd of June followed by a sharp rejection of same during last week trading session anticipates a change in direction.
iv. In this regard, I shall be looking forward to a Breakdown/Retest of Neckline (Key level I) @ $1.21200 for confirmations in the coming week.
v. Further plunge below Key level II @ $1.19500 might welcome addition to the existing position... Trade consciously! :)
Trading plan: SELL confirmation with a minimum potential profit of 250 pips.
Risk/Reward: 1:6
Potential Duration: 5 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
The prospect of positive clues on Federal Reserve monetary policy and weakness in the euro appears to be restoring some confidence back for the Greenback in the coming week(s) as I am looking forward to a Breakdown/Retest of Neckline which is also a Key level @ $1.21200 for confirmation.
Tendency: Downtrend (Bearish)
Structure: Breakdown | Supply & Demand | Trendline
Observation: i. The line drawn under pivot lows is a visual representation of the prevailing direction and speed of price action in the last couple of months.
ii. We have witnessed a sharp rise in the value of the Euro since the beginning of April 2021 and the multiple rejections at the $1.22500 area reveal a decline in Bullish momentum as Sellers appear to be on the verge of dictating the direction of price action in the nearest future.
iii. Breakdown of Trendline on the 3rd of June followed by a sharp rejection of same during last week trading session anticipates a change in direction.
iv. In this regard, I shall be looking forward to a Breakdown/Retest of Neckline (Key level I) @ $1.21200 for confirmations in the coming week.
v. Further plunge below Key level II @ $1.19500 might welcome addition to the existing position... Trade consciously! :)
Trading plan: SELL confirmation with a minimum potential profit of 250 pips.
Risk/Reward: 1:6
Potential Duration: 5 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
