On the Daily chart above, the upward trend line that was broken downward last week, and the negative MACD divergence are still good enough for us to maintain our bias for a downward price move. However, previous day’s low (which we’ve highlighted using the blue broken line) @ 1.6093 is a critical support that we would like price to break.
On the H4 chart above, from a day-trade perspective, we are still in a nice downtrend: price keeps forming lower highs and lower lows. However, the most recent swing low @ 1.6093, which also happens to be previous day’s low – as earlier said – is a critical support we would like price to break.On the other hand, if price pattern on the hourly is able to form new lower highs and lower lows – even without breaking the support level @ 1.6093 – the aggressive ones among us could consider that a Short Trade set-up. If I’m still in the market when (or if) this happens, I’ll post the update.
Similar scenarios are also playing out on the EURUSD and USDJPY pairs – both, also, to the Short side.
As in all market circumstances PATIENCE and DISCIPLINE are the keys here: the above analysis could keep us out of trade today – we never know; but let’s always remind ourselves that what we’re interested in is making money, not just making trades.
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