On the Daily chart above, an upward channel formation has been broken downward; and the base of the channel did a good job resisting further price retracement upward. As we could see, price re-tested the base but could not stay above it.
On the H4 chart above, we could see that the most recent swing low @ 1.3927 – acting as a support level (which we’ve highlighted using the broken blue line) has been broken downward. From a day-trade perspective, this is another good sign supporting a short trade.
However, we still need our hourly charts – using Fibonacci retracement levels and important resistance levels – to seek promising areas to take our short positions. Price pattern on the hourly must also be forming lower highs and lower lows. Please note that our aim is to sell a rally in today’s down trend.
Also, PATIENCE is the key here: we need to patiently wait for the hourly retracement. It might happen, and it might not.
However, we still need our hourly charts – using Fibonacci retracement levels and important resistance levels – to seek promising areas to take our short positions. Price pattern on the hourly must also be forming lower highs and lower lows. Please note that our aim is to sell a rally in today’s down trend.
Also, PATIENCE is the key here: we need to patiently wait for the hourly retracement. It might happen, and it might not.
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