If we start analysis from October 21 high
How to use this as a guideline and framework for trades
We have seen a minor pin bar today at this potential support area. So given the price position we might look for short term long trades that's confirmed through the hourly and four-hour charts. Appropriate targets could start at 0.7630, then the main descending trend line once again.
Alternatively, if we see a break below the 50-days SMA and the rising support of the wedge, in that case our bias should flip to shorting the pair, with an initial target at 0.7390. But note that without breaking the 0.7390 level which is the most latest higher low, the structure of the bullish wave will remain intact. Only a break below that level could confirm at least a retest of 0.7158 lows.
Good luck...
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Technician
- The pair has been trending lower, however, managed to establish a sequence of higher highs and higher lows within the past couple of months
- The series of higher highs and higher lows is taking the shape of a potential rising wedge pattern
- The latest bullish wave that marked the latest HH on chart, was halted at the main descending resistance.
- The price formed a minor short term double top at that resistance and the 0.786 retracement to retreat back lower
- The retreat stopped today at three levels, 1) the previously broken minor descending resistance 2)The 50-days SMA 3) The rising trend line for the potential wedge formation
How to use this as a guideline and framework for trades
We have seen a minor pin bar today at this potential support area. So given the price position we might look for short term long trades that's confirmed through the hourly and four-hour charts. Appropriate targets could start at 0.7630, then the main descending trend line once again.
Alternatively, if we see a break below the 50-days SMA and the rising support of the wedge, in that case our bias should flip to shorting the pair, with an initial target at 0.7390. But note that without breaking the 0.7390 level which is the most latest higher low, the structure of the bullish wave will remain intact. Only a break below that level could confirm at least a retest of 0.7158 lows.
Good luck...
Exclusively Subscribers to my mailing list will get one month access to my trading account . subscribe here thefxchannel.com/ ,
twitter.com/thefxchannel
My best regards
Technician
