Price on the weekly and monthly chart demonstrate price being at a key level (61.8%) retracement. That being said as seen on the daily time frame we have divergence with oversold on the RSI
. On the opening of the market (for those day traders) price can reach 1.6000 then we may begin to see bearish
PA. Our first downside target is in confluence with key structure, 200 EMA
and key retracement. Target one being 1.55700. Once this level has been met we can expect a retracement or continuation to the upside. So if price does reach our target and retraces to 1.57500 further analysis must be conducted to understand if it is just a retracement or if the upward movement will continue. As explained on the chart if 1.6000 is breached our next target would be at the extension 1.618 Price level 1.6500.
If you are selling from current price stop losses should be places above 1.6000 for swing traders. If you are a day trader stop losses should be set accordingly.