So this current setup is my personal favourite for the week ahead as there are lots of confluences for a Short trade and also a great Risk Reward profile.
The Weekly timeframe is showing us some Bullish movement which has given us the most recent trend line bounce, and also helped to create a new Fibonacci setup for our entry.
On the Daily timeframe (pictured above) we can see that price is in a Downtrend, making lower lows and lower highs, so we are now due a new lower low. The larger ongoing Fibonacci has had a 61.8% bounce, the smaller Fibonacci is also sitting at the 61.8% level. Price is touching the 50EMA (potential bounce), also about to bounce from the current Key Level at 2.0880. The 50EMA and 200EMA are also converging and will soon be looking to crossover.
The setup I am now looking for is a Daily closing Bearish candle, to confirm the most recent Fib level has held strong, I would then take a Short position with Stop Loss being placed above 2.0880 and Target 1 around 1.9880 (Although we will have to pay attention around this level due to the ascending trend line).
The Weekly timeframe is showing us some Bullish movement which has given us the most recent trend line bounce, and also helped to create a new Fibonacci setup for our entry.
On the Daily timeframe (pictured above) we can see that price is in a Downtrend, making lower lows and lower highs, so we are now due a new lower low. The larger ongoing Fibonacci has had a 61.8% bounce, the smaller Fibonacci is also sitting at the 61.8% level. Price is touching the 50EMA (potential bounce), also about to bounce from the current Key Level at 2.0880. The 50EMA and 200EMA are also converging and will soon be looking to crossover.
The setup I am now looking for is a Daily closing Bearish candle, to confirm the most recent Fib level has held strong, I would then take a Short position with Stop Loss being placed above 2.0880 and Target 1 around 1.9880 (Although we will have to pay attention around this level due to the ascending trend line).