I've had a short bias on this pair for 2 weeks now, with a few successful smaller TF trades (and 1 losing trades).
As you can see, on the Monthly TF we're also showing signs of bearish pressure.
- Hanging Man formation complete
- Dragonfly Doji almost complete with 3 days trading left this month)
- Key support turn resistance
- Bullish channel...
So i've been watching this pair trade between a tight consolidation zone, and am anticipating a bullish break into strong seller territory.
We've got room to move into the descending channel, and stay within bearish rules. But for me, i'm buying this pair up to 127.00, then 128.00.
- Simple structure play: break and close, outside return
- CTL break and retest on LTF
- Price crossed through 50EMA and came back to respect it twice
I'll be looking to sell this down to 0.75250, 0.73200 & finally 0.70000.
- Break of rising channel
- Retracement into previous structure
- Potential for move higher to create the right shoulder of a H&S pattern confirming downtrend
- PA showing signs of bearish continuation (high test wicks)
Following on from the Daily analysis I posted, this is the Weekly outlook.
We of course don't know what's going to happen, but it's always advisable to stay ahead of the market and prepare for as many eventualities as possible.
The red box is the PRZ on the Daily TF.
This falls short of the overall down trendline, but sits nicely in a strong Supply Zone...
Earlier during the week I posted the Bearish Bat pattern for a sell, inline with a nice fresh Supply Zone.
Looking left, we have nice structure for a sell, but it's also looking like a last safety zone before a move higher than our acceptable stops.
I've highlighted in red, where sellers are likely to enter the market.
I'm already long this pair, and moving over to the Weekly you can see a beautiful pin bar forming at the bottom of the channel.
There's little in the way of Supply ahead of an extended move higher, so i'll be keeping the HTF in mind with this trade.