-On a daily chart, we can see that the price reached a strong supply zone, and then the price formed a double top pattern.
-Double top is a reversal pattern so that means that we may expect that the bulls are going to gain some strength in that specific area.
-The bull's strength started losing its momentum as we can see when bulls touched the supply zone and then the bear power started to gain some control over this pair.
-If we have the option to set our chart to two days time period we will have a very nice bearish engulfing pattern that has formed in the supply area and that is also a very good indication that the bulls are losing strength and that the bears are going to gain some momentum to push to the downside.
-If that happened, I expect that the price is going to reach at least at 61.80% Fibonacci level and then we may expect a pullback or a breakout in a downside.
-And if you sue Stochastic indicator with settings ( I use 8,1,5) you will bearish regular divergence and that is an additional signal that the bears might get some power there!
-Before taking action in Forex, please check the economic calendar and currency strength meter.
-WHAT DO YOU THINK ABOUT THIS SETUP? Please let me know in the comment section!
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-Remember this analysis is not 100% accurate. No single analysis is. To make a decision follow your own thoughts. The information given is not Financial advice.