Pink line is a huge area of monthly resistance if you look to go to the monthly chart this is self explanatory.
tested 4 times with a false break out on one (the head), remember this is an area of support own the monthly so i tend to take into consideration 20-30pips area to play with for safety.
Head and shoulder ...
been in a strong downtrend on the weekly and monthly and has come to a strong monthly support level (pink large box)
Looking at the 1 hour graph a retest of either the 50 or 61.8% fibs if not broken will result in a fulfilment of extension wave ABCD to -27% fibs
Will wait for price action to ...
Too much confluence is going on in order for me not to have taken this trade
- Weekly res retest for 3rd time with no break through
-EMAs looking to cross over shortly
-D is the target
- Trend resistance also in play
-Price action candle shooting star/invert hammer
- Weekly and Monthly suggest downtrend also
A strong monthly support cannot be fully broken on the weekly and monthly time frame. Selling power has slowed down and is in a small sideways trend forming. 63 fibs in confluence with monthly support. Phase 1 long term trend in play for a confirmed trend reversal.
Looking to reach above 107.000 with a stop loss ...
Downtrend established due to 2 consecutive cycles.
respect of the 8 ema and therefore under the ema ( to the left)
touch of 27 extended fib so due for retracement and back down to extension 61.8 to fulfil the ABCD pattern
Potential to go even further to the monthly support around 0.70500
4:1 ratio risk reward