I present to you a daily analysis of a very important market and as you see the graph shows that this market will know with a very high probability a downward trend with the vigilance of return
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A long term trade, its a great opportunity for risk takers with at least 60 pips in profit.
Stoploss around 34 pips with a 1:2 ratio in profit
Macd is showing selling pressure with RSI also showing divergence
The strong Resistance level is between 1.68-1.68100 which can also play as a rejection level, moreover strong support is around 1.65900.
TODAY IN THE UK THE INFLATION DATA WILL BE RELEASED AND I SEE REASON TO BELIEVE IT HAS DECLINED. ALONG WITH THE BREXIT INFORMATION I EXPECT THE INFLATION NUMBER TO BE AT AN EXTREME LOW. IF THAT TO HOLD TRUE THEN WE WILL SEE THE UK PAIRS SUCH AS EURUSD AND GBPUSD SHOOT TO NEW HEIGHTS
After the break of the ascending trendline on Friday, next week we will be looking for a correction and after that maybe a continuation to the downside, the best place that we can think of to start a short position is going to be YH around the 7120 area, around that zone we also have some structure, as well as the 61.8 fib retracement.
Please keep in mind that...
This is a short term bullish head and shoulders pattern, it's clean and working well, there's plenty of time for entry and the move up into 114.50 area.
Stops should be below the right shoulder, target at 114.50 and entries around 113.90/114.00
Let's make some pips. Done. Period.