Bracing for Impact: Approaching Key Resistance Time To Sell?

19 lis 2023

This pair is fast approaching a key, higher weekly resistance level at 1.73, which was the origin of a more than 3,000 pip drop in 2022.

The price has retraced all that move, and in August, we saw a significant 1,000 pip drop on the first test of this resistance, with the price slowly making its way back up to this level.

We can see a weekly trend line being formed with lower highs, which suggests to me that the price is getting ready for a breakout of this resistance level, but I do expect one more sell-off around this level before breaking out towards 1.76.

What I would like to see happen is for the price to move up to test 1.73 and possibly move slightly above before selling off down towards the marked trend line around 1.67. Located here is also a strong support area marked in green.

This will be a great area for buyers to regroup and push the price up to the monthly resistance zone starting at 1.76.

I will be looking to enter a sell position using my TRFX indicator, waiting for sell signals from the 4-hour to the daily charts.

I will trail the take profit as the price moves down towards the 1.67 area and then look for evidence that buyers are coming back into the market.

Hope you enjoyed the post

2 gru 2023

Zlecenie aktywne

Moved up within a few pips off 1.73 then got a 4hr sell signal on the TRFX indicator dropped over 200 pips 50% of position was closed at 1.705 and stop loss was moved to entry price image of signal below