has been putting in a series of lower lows and lower highs forming an organized downtrend on the daily chart
. The market is currently in a recovery rally and approaching the 111.00 - 111.90 resistance zone
. This area of confluence is comprised of the previous swing high of the downtrend, the lower edge of a descending triangle
that was previously broken, and multiple primary Fibonacci retracements.
Positioning short within the resistance zone
with stops behind 111.90 invalidation point and targets at a retest of the low of trend around 106.00 offers traders almost a 3:1 reward to risk.
Aggressive traders have the opportunity to short at or near the confluence zone on initial test. More conservative traders can monitor price as it reaches the zone and wait for any number of confirmatory entry signals.