Tendency: Downtrend ( )
Structure: Breakdown | | Channel | Reversal pattern
Observation: i. Buyers completely lost grip of the $1.2000 level in early March 2021 resulting in a Breakdown that tested Channel the third time.
ii. A couple of rejection of the $1.2000 level after the Breakout (double rejection on the chart) reveals the selling pressure at this juncture.
iii. The resulting line drawn over high (represented on the chart as I & II) reveals the prevailing direction of price action since it hit peak @ @1.23500.
iii. As I look forward to a possible III, I have identified the $1.2100/1.19500 area to be a new area to look out for selling opportunity in the coming week(s).
iv. A word of caution: Should price decide to make a significant Breakout of Channel/Trendline to the upside @ $1.21000, set-up shall be disregarded for a rally with retest expectations… trade consciously :)!
Trading plan: SELL confirmation with a minimum potential profit of 350 pips.
Potential Duration: 6 to 10days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.