Price trading within 7 month channel and current supply/demand zone, I'm looking for a rejection (reversal pattern) of lower trend line and bounce off demand within next few days to go long.
SL below previous swing low/supply zone (1.30750 area)
TP at swing high/double top/demand zone (1.35600 area)
This setup gives us a possible 4:1 risk to reward (around 400 pips)
**HOWEVER**
The daily double top is at the 50% retrace of the entire 2016 move, which suggests a serious drop in price for 2017, and possibly running all the way down between the 1.22500 and 1.14400 area (800 to 1600 pips), which also reaches previous yearly structure, and the completion of a harmonic ABCD.
In order for me to get involved in this trade short, i'm waiting for a break & retest of demand zone and reversal pattern on support turned resistance. If that happens, looks like the first few months of 2017 is for the bears.
SL below previous swing low/supply zone (1.30750 area)
TP at swing high/double top/demand zone (1.35600 area)
This setup gives us a possible 4:1 risk to reward (around 400 pips)
**HOWEVER**
The daily double top is at the 50% retrace of the entire 2016 move, which suggests a serious drop in price for 2017, and possibly running all the way down between the 1.22500 and 1.14400 area (800 to 1600 pips), which also reaches previous yearly structure, and the completion of a harmonic ABCD.
In order for me to get involved in this trade short, i'm waiting for a break & retest of demand zone and reversal pattern on support turned resistance. If that happens, looks like the first few months of 2017 is for the bears.
