On the Daily chart above, as anticipated yesterday, the bulls’ movement has been decisively halted, and price seems to have resumed its long term downtrend. The next major support level, where we expect the bears’ resolve to be tested, is the most recent Daily swing low – also the year-low – @ 1.0178 (which we’ve highlighted using the blue broken line). From a day-trade perspective, there seems to be enough room for us to seek Short trade setups on the Hourly chart – supported by the H4 chart.
On the H4 chart above, price has broken the most recent swing low @ 1.0305 (which we’ve highlighted using the blue broken line) downward. That automatically sustains our bias in favor of a downward price move. The white horizontal line @ 1.0357 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. 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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