Here I present several price action confluences that are identified on the Fiber (EUR/USD). Firstly, we can see the price approaching the bearish trend line, which makes us look at the opportunities to trade pullbacks on this pair. Looking for further confluences, we can see the following indications on this pair; 1. A 50% fibonacci retracement level which has seemed to work out very well for the Fiber. 2. A supply zone (marked red) derived by analyzing oanda's open order book on the chart which also seems to be present at the same level. 3. A rising wedge formation just at the previous corrective leg, which is broken by a strong bearish candle.
Therefore, I have a bearish bias on this pair, with an approximate move of 160 pips below the current level. A further move down is also possible, but we need to look at how the price behaves at the demand zone identified to make further confirmations. Happy trading.
Trade closed: stop reached
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As we can see, we have the price breaking above the demand zone as well as the trendline, indicating that the setup is not validated. However, we can look for a retest of the demand zone to confirm the bullish bias on this pair. Till then, no further conclusions can be made. Happy trading!