On the Daily chart above, yesterday, further price-move upward was rejected within the “bears’ zone” (that we been discussing since Tuesday, this week); precisely 14 pips away from the critical resistance level – the year-high, as well as the most recent Daily swing high @ 1.5061 (which we've highlighted using the upper blue broken line). As a result, price ended with a reversal candle formation (a hammer) – a relatively strong indication that the 1.5061 would be holding and the bears would be taking over, at least temporarily. Earlier today, price action further confirmed the strength of the “bears’ zone” as price broke below the previous day’s low @ 1.4952 (not highlighted). For now, from a day trade perspective, our bias has turned bearish. The next critical support area is the lower edge of the upward or bullish channel, which is roughly 200 pips away from current price position; hence we seem to have enough room to seek Short trades on this currency pair.
On the H4 chart above, price has broken the most recent swing low @ 1.4952 (which we’ve highlighted using the blue broken line) downward. That automatically shifts our bias in favor of a downward price move. The white horizontal line @ 1.5047 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.
No comments:
Post a Comment