This pair has clearly been in a downtrend since late May 2021, hopefully you have caught some of that move. In late Nov 2021 it started consolidating in a channel structure and on 14 Jan, there was another sell signal (marked with an arrow). Now we have another opportunity to join this seemingly strong downtrend.
Note how large the last bearish (Friday) candle was. The bears obviously are in control and I don’t see why that would change over the next few days. The 1.1190 area was a strong support that was broken through with some serious momentum. Now, it appears that this level will be re-tested and if that happens, we will have an excellent opportunity to take a short trade.
With a risk of 50 pips, we could be looking at a +5R trade down to 1.090 region.
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Note how large the last bearish (Friday) candle was. The bears obviously are in control and I don’t see why that would change over the next few days. The 1.1190 area was a strong support that was broken through with some serious momentum. Now, it appears that this level will be re-tested and if that happens, we will have an excellent opportunity to take a short trade.
With a risk of 50 pips, we could be looking at a +5R trade down to 1.090 region.
If you like my analysis, please give it a “thumbs up” and follow me to get immediate notifications.
Always use sound money and risk management in all your trades.
评论:
Trade failed, the retracement was really deep. I think my idea is still right, the trade location is very wrong :)