On the Daily chart above, late last week, price re-tested the symmetrical triangle that was broken downward in late June, and, since then, it has moved consistently downward. Hence, our bias for a downward price move is maintained. However, let’s keep in mind a major Weekly chart swing low, which is also clearly reflected on the Daily chart as a major support level @ 93.85. It might halt the downward price move.
On the H4 chart above, from a day-trade perspective, we are still very much in a nice downtrend: price keeps forming lower highs and lower lows. The white horizontal line @ 95.44 highlights the most recent swing high, and as long as price stays below it, our downward bias remains intact. 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.
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