After the previous impulse bearish move downwards, price has been forming a corrective structure. The corrective structure has (1) completed the minimum 3 waves structure for a corrective move and (2) tested the blue rectangle resistance area. Hence, we could expect another move down to the lower blue rectangle as marked.
2 possible scenarios:
1) Price breaks ascending trendline
2) Price re-tests blue rectangle resistance area (5 waves structure) before heading down
If only either of the 2 above mentioned scenarios happened, I would be looking for a short trade. If not, this set-up would be invalid and the pair would be re-evaluated again.
2 possible scenarios:
1) Price breaks ascending trendline
2) Price re-tests blue rectangle resistance area (5 waves structure) before heading down
If only either of the 2 above mentioned scenarios happened, I would be looking for a short trade. If not, this set-up would be invalid and the pair would be re-evaluated again.
Comment:
Sorry, bias is short. Forgotten to indicate direction.
Comment:
Price has bounced off resistance area. Will be looking to short on break of rising trendline.
Order cancelled:
No trade. Price bounced off resistance, and then bounced off rising trendline before breaking resistance area aggressively.
Comment:
Could have shorted when price broke the trendline and formed a corrective structure but this did not go according to plan. Was a good opportunity..but opportunities are everywhere! Let's move on to the next one!