- The pair has been trending lower, however, managed to establish a sequence of higher highs and higher lows within the past couple of months
- The series of higher highs and higher lows is taking the shape of a potential pattern
- The latest wave that marked the latest HH on chart, was halted at the main descending resistance.
- The price formed a minor short term at that resistance and the to retreat back lower
- The retreat stopped today at three levels, 1) the previously broken minor descending resistance 2)The 50-days 3) The rising for the potential formation
How to use this as a guideline and framework for trades
We have seen a minor today at this potential . So given the price position we might look for short term long trades that's confirmed through the hourly and four-hour charts. Appropriate targets could start at 0.7630, then the main descending once again.
Alternatively, if we see a break below the 50-days and the rising support of the , in that case our bias should flip to shorting the pair, with an initial target at 0.7390. But note that without breaking the 0.7390 level which is the most latest higher low, the structure of the wave will remain intact. Only a break below that level could confirm at least a retest of 0.7158 lows.
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