Looking to enter short. Reasoning:
1. Perfect three drive pattern on the chart with target around 0.8900
2. Daily close is near the top line of upwards moving channel, looking at the channel I would expect to see correction back to 0.8960
3. Multiple RSI divergences. Price is making new highs, whilst RSI doesn't confirm that.
4. Head and shoulders formation on RSI.
Overall, very good risk reward opportunity. I would give some room to breath and place my stop loss with 20 pip from yesterday high.
Parameters:
Enter 0.90450
Stop loss 0.9072
Profit target: 50% at 0.8960 & 50% at 0.8910
RR 1:5
1. Perfect three drive pattern on the chart with target around 0.8900
2. Daily close is near the top line of upwards moving channel, looking at the channel I would expect to see correction back to 0.8960
3. Multiple RSI divergences. Price is making new highs, whilst RSI doesn't confirm that.
4. Head and shoulders formation on RSI.
Overall, very good risk reward opportunity. I would give some room to breath and place my stop loss with 20 pip from yesterday high.
Parameters:
Enter 0.90450
Stop loss 0.9072
Profit target: 50% at 0.8960 & 50% at 0.8910
RR 1:5