I am short after the storm cooled down from the FOMC decision to leave US intrest rates unchanged @ 0.25%.
Not sure anymore now and considering tightening my SL levels...
Two patterns could be in play for this pair on the 1H and 4H charts:
- a simple pattern namely a descending triangle which could point to a bearish direction.
- an advanced pattern namely a possible bat pattern if I dismiss the spike down...
The bat is not perfect though and we have still to surpass the possible B point to the upside so it is still very premature. There is also that spike..., but it is a spike, no close below A, at least not on the 4H or higher timeframe charts...
At the current time more signs point to further downside: the descending triangle, RSI well below 50, MA's dropping and gap widening, several supporting "up" trendlines were broken in the last couple of days/weeks.
Pointing towards some upside could be the MACD bullish divergence on both 1H (MACD and signal line divergence) and the 4H (histogram divergence) and the fierce rejection below around the 1.3070 level.
If we get above the B leg of the possible bat I might get long for a run up to the .886 level of XA and back short again after that...
Side-note: I did manage to get some profit (60+43+24 pips down and 24 pips up) out of the selloff and retracement back up after the FOMC decision! :-) :-)
Not sure anymore now and considering tightening my SL levels...
Two patterns could be in play for this pair on the 1H and 4H charts:
- a simple pattern namely a descending triangle which could point to a bearish direction.
- an advanced pattern namely a possible bat pattern if I dismiss the spike down...
The bat is not perfect though and we have still to surpass the possible B point to the upside so it is still very premature. There is also that spike..., but it is a spike, no close below A, at least not on the 4H or higher timeframe charts...
At the current time more signs point to further downside: the descending triangle, RSI well below 50, MA's dropping and gap widening, several supporting "up" trendlines were broken in the last couple of days/weeks.
Pointing towards some upside could be the MACD bullish divergence on both 1H (MACD and signal line divergence) and the 4H (histogram divergence) and the fierce rejection below around the 1.3070 level.
If we get above the B leg of the possible bat I might get long for a run up to the .886 level of XA and back short again after that...
Side-note: I did manage to get some profit (60+43+24 pips down and 24 pips up) out of the selloff and retracement back up after the FOMC decision! :-) :-)
