After breaking the 0.7500 mark right at the start of the year, the Bulls have yet to take the throne and fall to 0.7250.
Looking at the chart above, I've noticed a fibonacci form anticipating a drop. I like to test a fibs reliability by looking at how the chart reacted to the fib levels in the past and this one satisfies me when looking at the 4H timeframe. Ontop of that, since the market has broken the monthly support which will act as a resistance now, it will have a 75% chance of moving to the weekly timeframe (big up Shaun Lee for that) which was conveniently aligned with the second fib target giving me more confidence with my prediction.
Now that I have my predicted direction for the chart i need to look for a suitable entry so I started paying attention to the candles and looking for trendlines/counter-trendlines. I saw a bearish engulfer on the 4H timeframe but i wanted more clarification before entering. Therefore, looking at the wicks, i found a 4H trendline which was recently countered (shown on the graph) so seeing the candle close below it I saw it as a suitable entry into the market.
Looking at the chart above, I've noticed a fibonacci form anticipating a drop. I like to test a fibs reliability by looking at how the chart reacted to the fib levels in the past and this one satisfies me when looking at the 4H timeframe. Ontop of that, since the market has broken the monthly support which will act as a resistance now, it will have a 75% chance of moving to the weekly timeframe (big up Shaun Lee for that) which was conveniently aligned with the second fib target giving me more confidence with my prediction.
Now that I have my predicted direction for the chart i need to look for a suitable entry so I started paying attention to the candles and looking for trendlines/counter-trendlines. I saw a bearish engulfer on the 4H timeframe but i wanted more clarification before entering. Therefore, looking at the wicks, i found a 4H trendline which was recently countered (shown on the graph) so seeing the candle close below it I saw it as a suitable entry into the market.