We have completed a 5 wave move up with a LTF wave down. The HTF is for more up but there is an opportunity to grap some pips here. If price pulls back to .618 I will take the short to retest the pivot low to the 11.8 extension. The unfilled gap is of concern as it has had very little penetration and may be a strong support level. Watch for a break of the gap and then a retracement to the gap as it will become resistance. I will not trade the break of the purple 1 hr trend line as the RR is not good enough if the gap holds.
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If price breaks the pivot low I will watch to see how the gap is handled. A clear slamming of the window will indicate a strong area of resistance when price returns. However watch for a bounce from the gap (window). Since the gap has been penetrated prior the zone is a little larger from 105.419 to 104.601
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Price is looking like a correction and poised to drop. Look for a reversal around the orange TL. I will keep my short entry at the .618 but it may not get there. Keep an eye on the gap.
Trade active
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Comment
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took off 1/3 and moved stop to BE
Trade closed: target reached
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My target has been reached a quick 150 pips. Now we watch and see if the bounce on the bottom of the gap will reverse price or if price continues and closes the gap. Price came with in a few pips of where I suggested the lower edge of the gap would be. Usually if it goes this deep it will continue down. If price breaks below Look for the filled gap to become strong resistance.
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Price just hit the closed gap and was rejected strongly. I will look for a break of this correction to the downside to get back in this trade short.