4 Hour Time Frame:
Confluences
Price Action currently printing Lower Highs (H.L) therefore price is currently in a Downtrend.
ABCD Fibonacci formation.
Possible head and shoulder pattern which would allow price to go to one of the FIB C retracement level before heading lower (Counter trend line).
200 EMA acting as dynamic resistance.
Moving average suggesting a strong bearish momentum breaking through the daily support of 1.17500.
A possible 3rd touch of trend line may or may not be in play complementing the 38.20% level before heading lower.
Conclusion
Even-though price may head straight lower, however will be looking of a retracement before taking a valid setup to the downside since the 200 EMA is acting as dynamic resistance for Price Action (P.A).
Confluences
Price Action currently printing Lower Highs (H.L) therefore price is currently in a Downtrend.
ABCD Fibonacci formation.
Possible head and shoulder pattern which would allow price to go to one of the FIB C retracement level before heading lower (Counter trend line).
200 EMA acting as dynamic resistance.
Moving average suggesting a strong bearish momentum breaking through the daily support of 1.17500.
A possible 3rd touch of trend line may or may not be in play complementing the 38.20% level before heading lower.
Conclusion
Even-though price may head straight lower, however will be looking of a retracement before taking a valid setup to the downside since the 200 EMA is acting as dynamic resistance for Price Action (P.A).