By looking at the price action, its easy to see that the pair has been moving in a bullish direction for several days, since early November 2021 to be exact. Current price action shows an indication of potential market exhaust which could result in a bearish short term correction. Looking at the daily chart we see 3 potential confluences/reasons which is in line with our directional basis on the pair. A Double Top pattern formation, followed by a trendline breakout and key level breakout which signals a change in market structure from bullish to bearish. We will be looking to enter on the rest of this key level and expect price to spike up sharply before a continuing to the downside. Risk Reward of this particular trade currently stands at 8.76:1.
Trade active
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Price retested key level which was our signal to enter.
Comment
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Trade has reached 60% of the move. We will be monitoring the price behaviour in order decide whether to let the trade run for a few more days or to close trade and take what the market gives us.
Comment
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We will be looking to close this trade as per our trading plan rules.
Comment
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Trade is still moving in a bearish direction. We might soon some profit taking which will result in sharp spikes to the upside.
Trade closed: target reached
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Target has been reached. Unfortunately we had to avoid being greedy and close the trade according to our trading rules. Anything can happen in the markets.