This pair on the day chart looks geared towards a short position as it has just rejected the bulls at the 55ema level just 4 days ago on Monday. The candle today looks indecisive with a long wick on both ends with a relatively short body (at the time of writing) but when looking it together with RSI, it is with high possibility that that the price is still falling.
We see RSI making a huge bearish divergence with MACD negating any chances of a bull run as though the past 4 days were merely a retracement. It is possible that on a larger picture, this is 2nd wave retracement that has been trading sideways with a general downtrend. If so, we have broken the golden 0.618 fib level and will well head towards 0.786 as another strong support.
TLDR: I am shorting at 0.87150 with stop loss at 0.87545 (slightly above today's high) and aiming for 0.86000 (slightly above the 0.786 fib level of 0.85804). R:R is around 3. Let's hope i have stronger hands this time!
Not giving any advice, these are purely for my own documentation purposes. As I always say, DYOD!
We see RSI making a huge bearish divergence with MACD negating any chances of a bull run as though the past 4 days were merely a retracement. It is possible that on a larger picture, this is 2nd wave retracement that has been trading sideways with a general downtrend. If so, we have broken the golden 0.618 fib level and will well head towards 0.786 as another strong support.
TLDR: I am shorting at 0.87150 with stop loss at 0.87545 (slightly above today's high) and aiming for 0.86000 (slightly above the 0.786 fib level of 0.85804). R:R is around 3. Let's hope i have stronger hands this time!
Not giving any advice, these are purely for my own documentation purposes. As I always say, DYOD!