Should the market break the and stop us out, as it cycles back up to tap the neckline before dropping, we will execute another sell as the trade idea is still valid.
We saw some aggressive institutional buying pressure which took out the short term highs at 0.6800 giving us a break of structure(Highlighted in the yellow zone).
Market should now cycle down into the liquidity zone and collect more order. Market is showing large candles indicating that institutions are buying the market and we can anticipate and break to the upside once the market and take out all the dumb money. As the market cycles down it should trigger all the the speculators that have bought the market early which will drive the market down more aggressively.
We will be looking for buying opportunities at the liquidity level (0.6700) or slightly above at 0.6720, with first targets at the neckline.
A decisive break of the neckline will make the trade idea invalid, meaning enough liquidity was collected on the two taps into 0.6750. We would then wait for a retest of the neckline which should then act as support and buy the market.
The market could only drop into 0.6720 which coincides with the 78% Fib retracement level of the institutional buying and collect enough orders to reverse towards the neckline. In this instance we may place a small buy at that level depending on the lower time frame price action.
This trade idea could also become invalid if we decisively break the liquidity zone and keep falling continuing the major downtrend.
As soon as the market tapped out liquidity zone it rallied up aggressively towards TP.