Monthly
Since October 2016, monthly price action has tested 1.3400 as a strong resistance level and has failed to sustain itself above. January's candle formed a bearish engulfing taking out 5 months worth of prior price action. The March monthly candle stick is forming a potential shooting star as well as a lower swing high.
Weekly
3 pin formation at monthly resistance of 1.3400 with a false breakout. MAs very close and may possible cross to the downside. Lower highs on the swings.
Daily
Shooting star formation on Wednesday testing and rejecting the monthly resistance area. 5 days prior we had a huge bearish engulfing bar keeping us firming below our key level which indicates to me a reversal is in the works. MA crossover to the downside.
H4
Clear lower highs and lows signalling a downtrend as well as MAs crossed to the downside. We've broken our a long term TL, a short term CTL and potentially an outer CTL. A shooting star candle has formed rejecting all previous areas of significant structure. Fib level from swing low to swing high comes in as a 61.8 rejection with confluence around monthly resistance.
This pair has been a nuisance recently - let's see if we can finally get some solid downside momentum.
Since October 2016, monthly price action has tested 1.3400 as a strong resistance level and has failed to sustain itself above. January's candle formed a bearish engulfing taking out 5 months worth of prior price action. The March monthly candle stick is forming a potential shooting star as well as a lower swing high.
Weekly
3 pin formation at monthly resistance of 1.3400 with a false breakout. MAs very close and may possible cross to the downside. Lower highs on the swings.
Daily
Shooting star formation on Wednesday testing and rejecting the monthly resistance area. 5 days prior we had a huge bearish engulfing bar keeping us firming below our key level which indicates to me a reversal is in the works. MA crossover to the downside.
H4
Clear lower highs and lows signalling a downtrend as well as MAs crossed to the downside. We've broken our a long term TL, a short term CTL and potentially an outer CTL. A shooting star candle has formed rejecting all previous areas of significant structure. Fib level from swing low to swing high comes in as a 61.8 rejection with confluence around monthly resistance.
This pair has been a nuisance recently - let's see if we can finally get some solid downside momentum.
Trade closed: stop reached:
Stopped out for 52 pips.