So we have just bounced off a weekly resistance point creating a new higher low which is the first sign of shorting this currency pair. Secondly we have a nice engulfing candle which has closed on the breakout of a trendline. Thirdly we have got our first crossover with the MA's. the first initial target should be the monthly support line (RED)
I believe it is possible for this pair to reach my target of 0.98, i was waiting for a closing candle on the major SR line and think this trend will now continue.
on the 4H chart the long term resistance line has just been touched. this has been followed by a nice engulfing candle setup. the recent uptrend support line has also been broken. the 1H chart also shows what looks to me like a head and shoulders setup. all of this is telling me that i believe it will go short.
I predicted the reversal at point C and if this follows its pattern there should be an option to sell around 1.13800 and it may be a good idea to hold this a while. we are nearing a very popular resistance point as well. let me know what you think of this. its one of my first attempts with Fibonacci.
on the large scale theres a funnel formation indicating a rise. since 2016 this pattern also looks to me like it could be a buy option until around 97.50 (786 on fibs) to do this it will firstly need to break the downward trend resistance line.
