Even though we are generally in an uptrend, there are shreds of evidence that Buyers might have lost the steam that brought them this far as we await significant breakdown of neckline @ Fr0.68250 for confirmations that support Bearish bias. Tendency: Downtrend ( Bearish ) Structure: Reversal Pattern ( Double TOp ) | Trendline Observation: i. Uptrend: Line drawn under pivot lows explains the prevailing direction of price.
ii. Price is currently @ Fr0.68250 which has been a strong demand zone since the beginning of the year 2021.
iii. Evidence that supports my Bearish dimension is the double rejection of the major Support/Resistance level on Weekly chart @ Fr0.69130 which makes a Double Top – a strong Reversal pattern.
iv. As the Reversal pattern is on the verge of completion, it appears price is at a temporary end of a Bullish run and we have to be very careful as a Breakdown of neckline followed by retest/rejection might be the appropriate signal to sell in this instance.
v. We should not forget that the Neckline has been a strong Demand zone in the past and this could attract a handful presence of Buyers before the decline begins… Hence, trade consciously! Trading plan: SELL confirmation with a minimum potential profit of 250 pips. Risk/Reward: 1:5 Potential Duration: 3 to 8 days NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored. Risk Disclaimer:
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.
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Past performance is not necessarily indicative of future results.