On the weekly timeframe we can see our lower support level is at 1.34000 level and our upper resistance level is at 1.42000 level. Right now we are not close to the zones so we will make plays in anticipation of reaching these areas. Last week surged back to the upside but we are now testing a resistance level at 1.38000 so I will look for potential short opportunities here. There is also a head and shoulders pattern that broke the neckline and now we are retesting.
On the H4 timeframe we can clearly see that price is in a downtrend. As I remove the candlesticks so we can get a better look at the trend. We are currently retesting a previous LH point that just formed at 1.37700. If price mangled to respect this level it would be an ideal place to enter short opportunities for a swing trade.
As I bring the candlesticks back on we can already see price has shown rejecting in this area to end the week last week. I would need to see a double double here in order to take shorts then I would target the previous lows first.