Originally I had a longer term bullish bias on this pair, however my bias has been reverted after last weeks strong bearish close.
It looks like short term resistance has held, with the weekly candle putting in place a strong bearish engulfing candle with a potential stop taking wick, on the daily this could be seen as a fake out in order to entice bulls into the market.
My short bias is supported with a technical strength score of -5 but I will need to see further criteria in order to enter short. The blue one highlights the previous daily higher low, I will need to see a strong close below this level to confirm a change in trend. If this low is broken, I will be faced with two options for an entry, I may enter instantly and target a longer term trade or wait for a new lower high to form for a more aggressive, rewarding entry. This will all depend on the strength of the break.
A shorter term target for me would be the previous weekly higher low with a longer term target of the 1.400 key level!
It looks like short term resistance has held, with the weekly candle putting in place a strong bearish engulfing candle with a potential stop taking wick, on the daily this could be seen as a fake out in order to entice bulls into the market.
My short bias is supported with a technical strength score of -5 but I will need to see further criteria in order to enter short. The blue one highlights the previous daily higher low, I will need to see a strong close below this level to confirm a change in trend. If this low is broken, I will be faced with two options for an entry, I may enter instantly and target a longer term trade or wait for a new lower high to form for a more aggressive, rewarding entry. This will all depend on the strength of the break.
A shorter term target for me would be the previous weekly higher low with a longer term target of the 1.400 key level!