Unlike the GBPAUD, this pair is ready to make a big decline because at D1 chat price broke a clear uptrend channel making it first LL (lower low). Convergence on macd signals the direction of the next move. Price is now making a retracement and we should find an "ideal" entry point to continue the starting downtrend. Here on H4 chart we have:
- Price retracing to 0.50 fib (not shown) - Expanded flat correction seems complete - Previous wave 4 acting as resistance - Pinbar shows rejection from the strong round number 2.05000
This could be the start of wave 3 blue (in parenthesis), so a big decline expected.
Regards.
*****************DISCLAMER******************************************************************** This is just and idea, not a recommendation to buy or sell. Always do your own analysis before opening a trade. Managing is 60% of a trade, anytime I may decide not to open, close or even stop and reverse a trade depending on price action. Any respectful and constructive ideas are welcome (agree or disagree).
Comments
KVE
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Double top for ideal entry and then down?? >>
FullTimeTrader
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Yes, the deeper the retracement the better, but i think here is a good setup por a possible downtrend continuation. If fails i will consider sell higher. Regards.
aibek
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Nice setup! Will wait for 1-2 of 3 as risk of 0.618/0.764 still exists.
KevinSinghDhaliwal
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Hi Would you watch for this trendline or not valid in your opinion ?
FullTimeTrader
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Difficult to say, sometimes trendlines work and sometimes not. I prefer more reason to consider a valid setup, you can find my reasons above. Regards.