I predict that going short would be the best option for the next few days. Price has reached the resistance level at 1.1111 and the candlestick pattern at H4 suggests that the price will fall. Moreover, the ascending channel, which was tested multiple times since the end of July, might act as a pivot point for trend reversal if the price does reach 1.0888.
The Directional Movement Index indicates that a contraction has occurred, which may suggest the volatility to increase and the trend to reverse in a downtrend.
Stop loss at 1.112043, or even lower, would be suitable as then the price would be too high for the ascending channel to continue indicate the currency's behavior.
Stop loss: 1.112043
Take profit: 1.08870
Risk/Reward Ratio: 1.44
The Directional Movement Index indicates that a contraction has occurred, which may suggest the volatility to increase and the trend to reverse in a downtrend.
Stop loss at 1.112043, or even lower, would be suitable as then the price would be too high for the ascending channel to continue indicate the currency's behavior.
Stop loss: 1.112043
Take profit: 1.08870
Risk/Reward Ratio: 1.44
