overall for this pair in the longer run our pyscological target is around 1.1800-1.2000. However, that is based on the larger longer term time frames. In the interim we are looking short on this pair. We sent out a signal where we would short the breakout of the upward trend line which was breached from the volatility caused by the fundamental data.
However, as you could see we still have the head and shoulder pattern with a defending channel of lower highs and lower lows with a possible downside target creating the next lower low. Our first downside target being the blue box 1.12650 where the 200 EMA is acting as magnetic support. Once price has reached this level we may possibly see a retracement and continuation to our next downside target 1.12000. Once target one has been met we must re-analyse to ensure our next target is still valid.
If price breaks above the channel then this trade setup will no longer be valid. Stops ideally should be above 1.1400.
***TRADE AT OWN RISK***
However, as you could see we still have the head and shoulder pattern with a defending channel of lower highs and lower lows with a possible downside target creating the next lower low. Our first downside target being the blue box 1.12650 where the 200 EMA is acting as magnetic support. Once price has reached this level we may possibly see a retracement and continuation to our next downside target 1.12000. Once target one has been met we must re-analyse to ensure our next target is still valid.
If price breaks above the channel then this trade setup will no longer be valid. Stops ideally should be above 1.1400.
***TRADE AT OWN RISK***