This Analysis is also applied to the NZDUSD and AUDUSD Pairs as well. All feedback is greatly apprecited!
In this Analysis I will explain to you my perspective of my bias and why I decided to go with the Short Position. This Bias is intended as a Longer Term Swing Position that is predicted to take anywhere from a few days to 2 Weeks with the Use of the 4H and 1H TimeFrame
- Confluence 1 = Price has recently, within past two weeks, hit a level of Major Monthly Resistance, only to begin Falling. It created two Reversal Patterns in the process, being the Reversal Pattern and the Reversal Pattern.
Confluence 2 = Notice the Price didn't come all the way up to the very top of to the Major Monthly and instead decided to Retest the Previous Support it had broken, which is a Indication.
Confluence 3 = In my personal opinion, Price has just broken the support floor of the Pattern and Retested it as a newfound resistance and is beginning to fall.
Confluence 4 = There is Pinning at the very tip of the Structure as well as Divergence due to the increasing price creating higher highs while the Stock Indicator was starting to show lower highs, that was created throughout the whole way up.
Confluence 5 = I personally use other certain pairs that are against the USD such as the AUDUSD and the NZDUSD to validate my bias via correlation, which they both have. I chose both these pairs due to the similar correlation of structure amongst them. This is due to the AUDUSD being too overbought and the weakly released data of a higher Significantly Higher Unemployment Rate, indicating a highly potential, weaker Australian Dollar. As well, New Zealand had a poorly released GDP yesterday as of June 17th, 2020 too.
Thanks for checking out my Idea, Hope you enjoyed! (Also, if anyone ever wants to become friends and trade together and collaborate on Ideas together, hit me up!)
Stay Boss everyone
I also have the same reasoning as yours, double top and SHS formation.
I believe that in 0.5% of fibonacci we will arrive soon if the news helps. (where I will start to close some operations partially to make some profits)
Tomorrow, with Powel's speech, the price may fluctuate considerably. We look forward and congratulations on the analysis.