Off the back of the Federal reserves interest rate hike decision last year, this pair entered a long period of consolidation before finally breaking to the upside during the beginning of Feburary and proceeding to complete an Elliot wave cycle. A possible imminent Bearish run presented itself during the Friday trading hours as the price broke through the Kumo cloud of the Ichimoku indicator with the conversion line crossing through the base line. A selling opportunity arises upon the retest of the base of the cloud which has aligned with a 38.2 Fibonacci retracement level. Ideally a Bearish reversal candlestick formation will present itself in the sell zone to warrant us entering the trade. Bearish divergence is present on a Momentum indicator as well as showing that the price is gaining some Bearish momentum by being below the 0.0050 handle. Profits will be taken at the 161.80% Fibonnacci extension level while stops should be placed above the cloud (1.13082), this affords this trade an excellent risk/reward ratio.
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