If we take a look at our Daily chart, we can identify an overall Bullish trend, but as of lately we failed to put in a new structure high, so I will be looking to take this pair short if my rules for entry are met.
To build our potential short level we can step down to the 4H time frame and observe:
- Equal measure move AB=CD right around that 113.600 price action
- 1.414 Fib extension from our A to B move at above mentioned level
- 1.618 Fib inversion from our C to B move at the same 113.600 level
- The above mentioned ratios form a very nice Fib confluence in relationship with each other
- Even handle number 113.600 to which the market reacted in the past
- Bearish Gartley at 113.400 level (I don’t trade advanced patterns by themselves, I only use them as an extra filter for confirmation of short term market direction)
- Previous structure looking left (what was support is to become resistance)
If we can reach that 113.600 level I will look to sell this pair. For entering I will pay close attention to reversal candles forming in that zone and RSI going overbought.
To build our potential short level we can step down to the 4H time frame and observe:
- Equal measure move AB=CD right around that 113.600 price action
- 1.414 Fib extension from our A to B move at above mentioned level
- 1.618 Fib inversion from our C to B move at the same 113.600 level
- The above mentioned ratios form a very nice Fib confluence in relationship with each other
- Even handle number 113.600 to which the market reacted in the past
- Bearish Gartley at 113.400 level (I don’t trade advanced patterns by themselves, I only use them as an extra filter for confirmation of short term market direction)
- Previous structure looking left (what was support is to become resistance)
If we can reach that 113.600 level I will look to sell this pair. For entering I will pay close attention to reversal candles forming in that zone and RSI going overbought.