On the Daily chart above, we would notice that price is in a strong down trend: price pattern keeps forming lower highs and lower lows. In addition, price has broken a very strong support level - the most recent Weekly swing low @ 91.71 (which we've highlighted using the blue broken line on the Daily chart) downward. These are strong signs that the bears are fully in control. However, price has currently hit the lower edge of the downward channel - a potential support area, and it's yet to close below it; also, price is yet to gather enough momentum to break below Friday's low (the last trading day low). This current price action is a warning that, though price is in a strong down trend, an upward retracement might be imminent. Consequently, let's keep these support areas in mind. Conservative traders would probably prefer to see price close and break decisively below the lower edge of the downward channel and Friday's low, respectively.
On the H4 chart above, price has broken the most recent swing low @ 91.42 (which we've highlighted using the blue broken line) downward. That sustains our bias in favor of a downward price move. The white horizontal line @ 92.24 highlights the most recent swing high, and as long as price stays below it - in the absence of any new and lower swing high - our bearish or downward bias remains intact. But, let's not forget the possible price retracement signs discussed on the Daily chart.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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