On the H4 chart we can see that the most recent up trend line was broken already (blue dotted line) and price is now re-testing. It is crucial for the pair to remain below 0.7725 for this scenario to be valid. Close above it would most likely mean that we are going to see further continuation up so we don’t want to be involved.
If however price bounces off this zone, breaks below last low (marked with orange dotted line) then we can look for sells. Simply wait for a small pullback (you can draw the down trend line that would form from the last high on H1 as dynamic resistance as well to pinpoint a better entry) and go short.
Use the down trend line as your protection.
0.7460 should be your final target and as target one 0.7530.
If however price bounces off this zone, breaks below last low (marked with orange dotted line) then we can look for sells. Simply wait for a small pullback (you can draw the down trend line that would form from the last high on H1 as dynamic resistance as well to pinpoint a better entry) and go short.
Use the down trend line as your protection.
0.7460 should be your final target and as target one 0.7530.
