Thanks to yesterday’s aggressive advance north to highs of 0.9733, our outlook for today’s upcoming trade is going to be relatively straightforward. With price seen trading at a small weekly supply marked with a pink circle at 0.9787-0.9695 and daily action closing in on a supply drawn from 0.9787-0.9755, this, as we’re sure you’ll agree, casts a certain bearish cloud over this pair.
However, when taking into account that the H4 chart is currently chalking up a near-perfect bearish Harmonic Gartley pattern which converges nicely with the above said daily supply (green circle), this places us firmly in the sellers’ camp today. With that being the case, we have placed a pending sell order at 0.9752 – two pips above the mid-level resistance 0.9750, and a stop-loss order above daily supply at 0.9790. Should our order be filled today, we’ll be looking to take a small chunk of our position off the table at the nearest H4 demand formed on approach, and from there we’ll reassess regarding further take-profit zones as we see this pair driving quite a way lower over the next few days.
However, when taking into account that the H4 chart is currently chalking up a near-perfect bearish Harmonic Gartley pattern which converges nicely with the above said daily supply (green circle), this places us firmly in the sellers’ camp today. With that being the case, we have placed a pending sell order at 0.9752 – two pips above the mid-level resistance 0.9750, and a stop-loss order above daily supply at 0.9790. Should our order be filled today, we’ll be looking to take a small chunk of our position off the table at the nearest H4 demand formed on approach, and from there we’ll reassess regarding further take-profit zones as we see this pair driving quite a way lower over the next few days.
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