We can see on the chart that the price is close to the resistance level. Once we can see that it is touching and unable to break we could consider to short it.
The other reason why it would be a potential short is because when we look at the RSI we can see that the 70 level has been broken so that is an indication that there could be a price reversal.
We can also see that there is a divergence happening when we look at the MACD indicator. This is also an indicator for a price reversal.
When we do take this trade keep in mind that the SL is 63.1 pips away so don't take a lot size that could harm you seriously when the SL hots. Risk management is very important.
The risk-reward is 3.79 so I think that this is worth a try then.
Please let me know in the comments what you think of it.
If you like the idea don't forget to give it a like and follow me for more ideas.
If you have any questions, feel free to PM me.
The other reason why it would be a potential short is because when we look at the RSI we can see that the 70 level has been broken so that is an indication that there could be a price reversal.
We can also see that there is a divergence happening when we look at the MACD indicator. This is also an indicator for a price reversal.
When we do take this trade keep in mind that the SL is 63.1 pips away so don't take a lot size that could harm you seriously when the SL hots. Risk management is very important.
The risk-reward is 3.79 so I think that this is worth a try then.
Please let me know in the comments what you think of it.
If you like the idea don't forget to give it a like and follow me for more ideas.
If you have any questions, feel free to PM me.