is showing signs of a bearish trend
extension as the current retracement on the 4-hour chart appears to be weakening. The RSI
is near overbought and the current 4-hour candle is bearish
with a long downwards wick. The bulls are still fighting, but I am anticipating the buying pressure to let up soon as this candle can't seem to maintain prior bullish
strength. My entry signal is a lower low, lower close candle where the current candle low and close are both lower then the previous candle's low. This signal tells me that momentum has shifted and to expect price to continue to move lower. If I do get my entry signal, my stops are planned at 1.2530 and profit target at 1.2205. This presents roughly a 4.5 to 1 risk:reward profile, depending on when (and if) we get a valid entry signal.