Supported by positive US economic data (rebound in US yields and an impressive Markit Manufacturing PMI Flash for May), the Greenback has the potentials to soar across major pairs as I anticipate a Breakdown/Retest of Key level @ $1.41400 to respect in the coming week(s).
Tendency: Downtrend ( )
Structure: | Channel | Reversal pattern ( ) |
Observation: i. DOUBLE TOP: The appearance of an extremely technical reversal pattern forming after price attains a peak @ $1.42500 at two consecutive times signals a risk of further decline in the coming week(s).
ii. Despite closing above Key level @ $1.414000 during last week trading session, attempts on a rally continuation was repeatedly rejected by the $1.42000 area hereby giving significance to the Major Supplication area which has a 20-year-old memory (since 2001 - see weekly chart).
iii. As I look forward to the correction phase that will transition into respecting the , the Key level @ $1.414000 remains a yardstick for selling opportunity for me in the coming week.
iv. To buttress my bias, We can not ignore the appearance of converging ( pattern) indicated on the chart with two drawn to connect the respective highs and lows of price action over the last 10days (10th - 21st May 2021) which has a tendency to Breakdown/retest for signal confirmation.
v. Kindly note that
a. Below the Key level remains a confirmation for this set-up to remain valid.
b. Further Breakdown of ($1.39ish) will welcome addition to the position after retest/correction... Trade consciously :)
Trading plan: SELL confirmation with a minimum potential profit of 250 pips.
Potential Duration: 10 to 20days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
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