This is the EURUSD
on the daily, what we see here is price action approaching a very a good shorting opportunity that will offer great reward with very little risk. We can see here that in an uptrending the market price retraced to 50% of the X to A leg and after such a retracement a common extension is to 127.2% or 138.2%. If the 138.2% extension is hit we will also see the completion of an AB=CD
pattern which is another great shorting setup. Both of these high probability setups together will be supported by a nice area of resistance and an overbought market condition. I will be looking to sell near the 138.2% extension for an optimal entry with the least amount of risk. Stops above 161.8% extension will be the most conservative approach.