I anticipate EC doing a move down. Reasoning:
- unable to break through weekly resistance, with nice wicks on daily (nothing spectacular though)
- RSI divergence on H4 and D
- within a daily upwards channel, which looks like a bear flag on weekly, struggling at the control price which aligns with the weekly resistance
- weekly trend is clearly down, trading with the higher time-frame trend
- possibly in the process of forming H&S pattern
Aiming at a 2:1 RR, if the channel is broken there is much more downwards potential. Watch closely at 0.925-0.93 as that area might provide some support.
- unable to break through weekly resistance, with nice wicks on daily (nothing spectacular though)
- RSI divergence on H4 and D
- within a daily upwards channel, which looks like a bear flag on weekly, struggling at the control price which aligns with the weekly resistance
- weekly trend is clearly down, trading with the higher time-frame trend
- possibly in the process of forming H&S pattern
Aiming at a 2:1 RR, if the channel is broken there is much more downwards potential. Watch closely at 0.925-0.93 as that area might provide some support.
Trade closed: target reached