This is a purely technical play. The support zone seems to have become resistance, and might serve to "hold the price down", so to speak. We are also seeing some bearish divergence on the stochastic oscillator.
On the 4H chart, the price action does seem to be in a down trend, with this current bump higher possibly opening the door to a new leg lower. The stochastic is also overbought on the 4H, but not on the Daily chart. I think that might be okay since I'm only looking for a short term trade.
Although I suspect if we do go lower, it will be a zig zag affair with the price showing plenty of indecision. It might also make moving stops to breakeven problematic.
As always, I'm trading this with a limit order to trigger if the price falls below 1.6750. Stops and targets are set according to my personal perspective. I will be willing to take any easy money off the table before the targets are reached if I suspect things might not go according to plan.
On the 4H chart, the price action does seem to be in a down trend, with this current bump higher possibly opening the door to a new leg lower. The stochastic is also overbought on the 4H, but not on the Daily chart. I think that might be okay since I'm only looking for a short term trade.
Although I suspect if we do go lower, it will be a zig zag affair with the price showing plenty of indecision. It might also make moving stops to breakeven problematic.
As always, I'm trading this with a limit order to trigger if the price falls below 1.6750. Stops and targets are set according to my personal perspective. I will be willing to take any easy money off the table before the targets are reached if I suspect things might not go according to plan.
Trade closed manually:
Price has flown away, so I need to reanalyze this setup and try again.
Limit order was not triggered, so no harm done.
Back to the charts!
Limit order was not triggered, so no harm done.
Back to the charts!