This is the setup that I have been waiting for (for a while now). The confluence of factors on this setup makes it a high quality trading setup in my opinion and here is what I'm watching:
1. Bearish pin bar
2. Moving average pinned
3. Previous support pinned as resistance
4. 50% fibonacci retracement level tested
My view is that price is likely to fall from this point, taking into consideration the capped trend line where lower highs are clear showing a bearish market structure. The obvious levels that could be reached would be the two previous swing lows at 1.30500 and 1.30200 respectively.
When I look on the weekly time frame it appears that there may be much more down side should the marked support fail, so I am inclined to use a dynamic stop and extend the target indefinitely should the market play out in my favor.
Don't invest what you can't afford to lose. This is not investment advice. Subjective view/report of a financial product only.
DISCLAIMER
All information published within this website is purely for educational purposes and offers no guarantees. Profit Fx, Forex Bootcamp and any of its associates cannot be held responsible for any trades that you have executed in any way whatsoever. Please familiarize yourself with the relevant risks involved when trading forex, CFD’s and other products. Any trading is done solely at your own risk. Profit Fx, Forex Bootcamp and any of its associates are in no way employed by any broker or any other legal entity. All information published within this website does not constitute advice, but rather objective information about a financial product and analysis or report of a financial product.
1. Bearish pin bar
2. Moving average pinned
3. Previous support pinned as resistance
4. 50% fibonacci retracement level tested
My view is that price is likely to fall from this point, taking into consideration the capped trend line where lower highs are clear showing a bearish market structure. The obvious levels that could be reached would be the two previous swing lows at 1.30500 and 1.30200 respectively.
When I look on the weekly time frame it appears that there may be much more down side should the marked support fail, so I am inclined to use a dynamic stop and extend the target indefinitely should the market play out in my favor.
Don't invest what you can't afford to lose. This is not investment advice. Subjective view/report of a financial product only.
DISCLAIMER
All information published within this website is purely for educational purposes and offers no guarantees. Profit Fx, Forex Bootcamp and any of its associates cannot be held responsible for any trades that you have executed in any way whatsoever. Please familiarize yourself with the relevant risks involved when trading forex, CFD’s and other products. Any trading is done solely at your own risk. Profit Fx, Forex Bootcamp and any of its associates are in no way employed by any broker or any other legal entity. All information published within this website does not constitute advice, but rather objective information about a financial product and analysis or report of a financial product.