Hey all, if you've been following most my trades then you might have picked up on the fact that I primarily work with long-term strategies, but I thought I'd share this short-term idea in the event that some of you prefer shorter-term strategies. What we can see from the extended view is that this pair has been in a descending channel for quite some time, and very recently it decided to test a break in this channel that was promptly rejected - sending the price back down to work within the outlined boundaries. The price point that the pair rejected was also visited not too long ago, thereby creating an apparent double top formation with a very well-defined neckline that seems to fit in quite nicely with the fibonacci levels applied on this micro view. If the price manages to break the 0.74414 S&R level, we can reasonably expect it to continue past the neckline and down to the 0.236 fib level (which also happens to be a strong S&R level stretching back a few months. I expect to see some consolidation happening in the Target 1 area followed by a break down to the aforementioned 0.236 level which will act as the second target.
As an added heads-up if you choose to trade this particular idea: There are numerous high-profile events occurring on the economic calendar that may negate this idea entirely if the structure is not complete by then.
Setup
Entry: 0.74414
TP: 0.74163 and 0.73907
SL: 0.74607 (channel exit)
As an added heads-up if you choose to trade this particular idea: There are numerous high-profile events occurring on the economic calendar that may negate this idea entirely if the structure is not complete by then.
Setup
Entry: 0.74414
TP: 0.74163 and 0.73907
SL: 0.74607 (channel exit)