Sell below 0.7885. Stop loss at 0.7978. Take profit at 0.7696
Reason for the trading strategy (technically):
Price is starting to reverse nicely below our major resistance at 0.7885 (61.8% Fibonacci retracement, horizontal swing high resistance, bearish divergence) and we expect to see a strong reaction off this level to push price down to at least 0.7696 support (Fibonacci retracement, horizontal pullback support). It’s important to watch out for our ascending support line as only breaking this line would trigger a strong drop.
Stochastic (34,3,1) is also testing major resistance at 98% and we can see bearish divergence vs price signalling that a reversal is impending. Recent bearish exit of our ascending support-turned-resistance line is a precursor that price is going to do the same.
Reason for the trading strategy (technically):
Price is starting to reverse nicely below our major resistance at 0.7885 (61.8% Fibonacci retracement, horizontal swing high resistance, bearish divergence) and we expect to see a strong reaction off this level to push price down to at least 0.7696 support (Fibonacci retracement, horizontal pullback support). It’s important to watch out for our ascending support line as only breaking this line would trigger a strong drop.
Stochastic (34,3,1) is also testing major resistance at 98% and we can see bearish divergence vs price signalling that a reversal is impending. Recent bearish exit of our ascending support-turned-resistance line is a precursor that price is going to do the same.