The picture being displayed is of my analysis on a 1H time frame. You can clearly see vivid support and resistance levels. But what is most intriguing I find that if you were to take a look on the 4H time frame you'd find that in early January there was a strong level of Resistance prior to our New High. This level lingers around the .73127 which has now turned to the support level on a 4H time. Once again bringing a daily perspective you would find that there is no coincidence that the .74 level has been tested and a shift in momentum has followed. The reason being we previously tested this level and failed in early September. Now that we have an idea of why this happened we can dive a bit further into the 1H analysis. Since this pair has been in a bull market for quite some time its no surprise that we may find a correction approaching.
Although this is a conservative short, this being my first published analysis, I find that this trade has good potential and in case of a rally to the upside we are protected against it. In conclusion a good potential short for 50 pips, at a 2.83 risk/ reward ratio.
Although this is a conservative short, this being my first published analysis, I find that this trade has good potential and in case of a rally to the upside we are protected against it. In conclusion a good potential short for 50 pips, at a 2.83 risk/ reward ratio.