Looks like a head & shoulders pattern forming on a trend line supporting the possible reversal.
Waiting for confirmation of H/S pattern with a strong bullish momentum break above the resistance area seen in the red box (1.2735 - 1.2768)
However, if price action were to break below the ascending trend line area seen within the green lines we could see a major move down towards 1.2040.
If H/S form with a break above the resistance area:
SL - 1.2724
Buy around - 1.2790
TP1 - 1.2840
TP2 -1.2890
TP3 -1.2990
If H/S fails and price breaks ascending trend line:
If a strong bullish candle breaks through the 1.2500 handle enter or wait for a pullback to approximately 1.2500.
SL - 1.2530
Sell - Approx. 1.2500
TP1 - 1.2450
TP2 - 1.2400
TP3 -1.2200
P.S opening a position at the bottom of the right shoulder could be a possibility if there is a strong reversal signal (pin bar etc.) in a lower time frame (1hr or 4hr)
Happy Trading
Waiting for confirmation of H/S pattern with a strong bullish momentum break above the resistance area seen in the red box (1.2735 - 1.2768)
However, if price action were to break below the ascending trend line area seen within the green lines we could see a major move down towards 1.2040.
If H/S form with a break above the resistance area:
SL - 1.2724
Buy around - 1.2790
TP1 - 1.2840
TP2 -1.2890
TP3 -1.2990
If H/S fails and price breaks ascending trend line:
If a strong bullish candle breaks through the 1.2500 handle enter or wait for a pullback to approximately 1.2500.
SL - 1.2530
Sell - Approx. 1.2500
TP1 - 1.2450
TP2 - 1.2400
TP3 -1.2200
P.S opening a position at the bottom of the right shoulder could be a possibility if there is a strong reversal signal (pin bar etc.) in a lower time frame (1hr or 4hr)
Happy Trading
Note
Watch out for news releases this week. NFP on Friday could be the catalyst for the momentum we are looking for!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.