The pair respected the 50EMA on the hourly chart for the third time. However, the bears are unable to push the price lower forming a minor support line just beneath
the current TP zone.
The price is approaching the 50EMA and looking at the Fibonacci retracement, we have a level at the 1.7821 which is just above the 50EMA and within our current zone.
If the price gets rejected on the retracement and consolidates on the area of our low swing, that makes the minimum requirement for a correction.
If the price beats the current swing low, our confirmation of the correction is complete and we will have a continuation of the trend looking to retest the 1.7533 level which would be
the lowest since 21 January of this year.
If we see our confirmation (bearish engulfing, shooting star, etc) we would go short, we can trail our stop and our first TP zone would be at the 1.7665 minor zone which was a
support zone on 29 January. Our second TP zone would be at the 1.7533 level.
That would give us a minimum 1:3 RR Ratio.
A more conservative approach would be waiting for the confirmation of a trend continuation (break of the swing low) before going short on the pair.
the current TP zone.
The price is approaching the 50EMA and looking at the Fibonacci retracement, we have a level at the 1.7821 which is just above the 50EMA and within our current zone.
If the price gets rejected on the retracement and consolidates on the area of our low swing, that makes the minimum requirement for a correction.
If the price beats the current swing low, our confirmation of the correction is complete and we will have a continuation of the trend looking to retest the 1.7533 level which would be
the lowest since 21 January of this year.
If we see our confirmation (bearish engulfing, shooting star, etc) we would go short, we can trail our stop and our first TP zone would be at the 1.7665 minor zone which was a
support zone on 29 January. Our second TP zone would be at the 1.7533 level.
That would give us a minimum 1:3 RR Ratio.
A more conservative approach would be waiting for the confirmation of a trend continuation (break of the swing low) before going short on the pair.