On the daily chart we took a bearish engulfing reversal signal 220 pips down to 1. 785 level, where our trailing stop took us after market reversed - Swing Low.
On the 1h chart we now see a possible entry point to get short as it is possible the completion of the three wave correction has completed. Price is near both horizontal, long term diagonal trend lend and R1 pivot resistance. We have several bearish Haramis tagging upper BB, a spinning top and price is having trouble in this area. We also have Bearish Divergence ( Blue Lines ). Stochastic has move back south with a signal line cross. Price has retraced to the 61.8% area. Finally we have a a bearish engulfing that just completed.
The one thing that gives us pause is wave C and wave A are usually the same length. In this case wave C just happens to be 618% of wave A, which many EW techs say is "next best". The 100% of wave A view would take price to the 1.8300 level, which has confluence with R1 pivot resistance.
Conclusion, either way I am still bearish on this pair. Option 1 Sell with a break of 5 pips below the short term horizontal and diagonal trend lines. ( sell stop if you don't want to watch). Option 2. If price closes above current swing high and long term diagonal resistance, wave C has not completed and we must wait for a new swing high, and the appropriate reversal signals as above.
If you don't want to watch it, enter a sell stop for option 1 and sell limit for option 2.
On the 1h chart we now see a possible entry point to get short as it is possible the completion of the three wave correction has completed. Price is near both horizontal, long term diagonal trend lend and R1 pivot resistance. We have several bearish Haramis tagging upper BB, a spinning top and price is having trouble in this area. We also have Bearish Divergence ( Blue Lines ). Stochastic has move back south with a signal line cross. Price has retraced to the 61.8% area. Finally we have a a bearish engulfing that just completed.
The one thing that gives us pause is wave C and wave A are usually the same length. In this case wave C just happens to be 618% of wave A, which many EW techs say is "next best". The 100% of wave A view would take price to the 1.8300 level, which has confluence with R1 pivot resistance.
Conclusion, either way I am still bearish on this pair. Option 1 Sell with a break of 5 pips below the short term horizontal and diagonal trend lines. ( sell stop if you don't want to watch). Option 2. If price closes above current swing high and long term diagonal resistance, wave C has not completed and we must wait for a new swing high, and the appropriate reversal signals as above.
If you don't want to watch it, enter a sell stop for option 1 and sell limit for option 2.
