My apologies for such a saturated chart.
For me, this bullish trend is ending very soon. We can see that the price is losing strength as it approaches to the weekly resistance. It also got over the 0.76 just for 20 pips and immediately reversed. Zoom in on last pullback and pay attention to the volume traded. You can see the bearish candles have more weight and for me this is a signal that the price is already getting into a bearish zone! Inside the upward channel we can find an ascending wedge which is also another reason to think price can strongly reverse.
Also check ADX is showing that the trend is losing strength and RSI almost breaking its upward trend.
This all is happening in the 78.6% level (red Fibonacci levels) of the last downward impulse which make me think we might be facing the formation of a new downtrend so we are going to place our (first) target on the 50% (blue Fibonacci levels)which is casually a psychological number 0.74
So, why the massive stop?
I strongly believe price must reverse very soon but there is still a chance for an unexpected last impulse which I am going to use to keep going short in order to get more profit.
Keep in mind that counter-trend trades are highly risky and adding more trades when price is not reversing as expected makes it way more risky!
I hope my analysis is useful for your next trades
Don't forget to hit the like button, I really appreciate it
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100% Forex Market
For me, this bullish trend is ending very soon. We can see that the price is losing strength as it approaches to the weekly resistance. It also got over the 0.76 just for 20 pips and immediately reversed. Zoom in on last pullback and pay attention to the volume traded. You can see the bearish candles have more weight and for me this is a signal that the price is already getting into a bearish zone! Inside the upward channel we can find an ascending wedge which is also another reason to think price can strongly reverse.
Also check ADX is showing that the trend is losing strength and RSI almost breaking its upward trend.
This all is happening in the 78.6% level (red Fibonacci levels) of the last downward impulse which make me think we might be facing the formation of a new downtrend so we are going to place our (first) target on the 50% (blue Fibonacci levels)which is casually a psychological number 0.74
So, why the massive stop?
I strongly believe price must reverse very soon but there is still a chance for an unexpected last impulse which I am going to use to keep going short in order to get more profit.
Keep in mind that counter-trend trades are highly risky and adding more trades when price is not reversing as expected makes it way more risky!
I hope my analysis is useful for your next trades
Don't forget to hit the like button, I really appreciate it
Follow me for more ideas
100% Forex Market
Comment:
Price is not falling strongly so we are going to take partial profits and move our SL to break even