This has opened up an opportunity to trade with over 1:4 risk to reward, I'll be selling upon the breakout of the trendline.
Do not forget we have the FOMC rate statement on the 1st of February and NFP on the 3rd of February, this provides additional reasoning for a 600 pip move.
As always, trade safe everyone!
Don't forget we have the FOMC rate statement at 7:00PM (GMT).
Depending on whether we see a bounce or break this could be an excellent entry point for those of you still on the sideline.
Price is currently sitting on the 0.382 retracement which is a crucial daily support level, if we see a clean break it will drop to the minor support level at the 0.618 retracement.
Price could potentially pullback to the 0.382 retracement level before continuing the move, this would be an excellent area short.
The exact same is happening around 0.70400, price has hit the 0.382 retracement level and we're starting to see signs of indecision.
I'm expecting to short from this level all the way down to support at 0.68900, if the drop occurs I'll be sure to update you all in the near future with my next move.
As shown on the chart the 200 EMA crosses over the 0.382 retracement level and price closed below.
I'll see you all at the bottom :)
I'll be holding my position down to the support level before analysing this pair futher.
I hope you all have a great weekend!
Price is now trading within a descending channel on the 30m chart as shown below.
I'll be expecting price to continue down to 0.69100 to complete a bullish bat pattern, at this area we may see a temporary reversal before continuing the bigger picture.
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That's looking good :) it should be a good trade!