I rode the uptrend of this pair from the previous support of 111.843, and sold it at the doji at the top. The next session forms a 'dark cloud cover' which signals a bearish reversal. The following dojis suggest unclear signals, hence i waited for a confirm of a bearish reversal. MACD is also showing signs of slowing momentum and a potential crossover. Stochastic also shows that this pair is overbought, and may drop is price soon. One may wait for confirmation from the crossover of the MACD, but the current red candle is sufficient to tell that sentiments are bearish right now. While this is a potential trading setup, it is possible that this is just a small pull back before reaching for higher highs.
To optimize your entry points, use the 1 hour chart to check for pull backs to prevent unfavorable entries.
To optimize your entry points, use the 1 hour chart to check for pull backs to prevent unfavorable entries.