My reason Behind this trade setup is clearly you can see its created a mini resistance which was broken also trend line was broken therefore next level will be reached IMO at 1.0800
So .... 1.we have a strong trend line acting as RES 2.we had a fake break out 3. price has dropeed after the retest of trendline 4.bearish engulfing on previous 4hr candle 5.daily candle is a bearish hammer
Reason behinf this setup .. 1.firstly a touch and bouce of strong trendline RES 2. if you go down to 4hour chart higher highs and lower highs where being made but price action violated that patern 3.daily candle is a strong bearish candle