What Happened:
Price broke market structure in mid-May (price broke out of the bottom of consolidation zone, now the supply zone, and then broke higher). About a week later, the top of the downward channel was not respected. A strong rejection would have given a good indication that although market structure had broken earlier in the month, the down trend would still continue. At first it looked like a reversal might happen, we saw an engulfing candle at the reversal point, but a second engulfing candle took price back out of the channel, where price closed and ended the week.
What's Next:
I'm targeting the next highest consolidation zone, which lies right above the next resistance level @ 1.081. It is possible we could see a reversal back down to support @ 1.064, but I'm always going to side with the trend. I expect to see a rejection at resistance but price should eventually push through to demand.
I'm going to make two market entries later today, the first targeting resistance and the second targeting demand. When my first target is hit, I'll just set my stop to 40%-50% profit and let it run. That's my plan we'll see how things go.
Price broke market structure in mid-May (price broke out of the bottom of consolidation zone, now the supply zone, and then broke higher). About a week later, the top of the downward channel was not respected. A strong rejection would have given a good indication that although market structure had broken earlier in the month, the down trend would still continue. At first it looked like a reversal might happen, we saw an engulfing candle at the reversal point, but a second engulfing candle took price back out of the channel, where price closed and ended the week.
What's Next:
I'm targeting the next highest consolidation zone, which lies right above the next resistance level @ 1.081. It is possible we could see a reversal back down to support @ 1.064, but I'm always going to side with the trend. I expect to see a rejection at resistance but price should eventually push through to demand.
I'm going to make two market entries later today, the first targeting resistance and the second targeting demand. When my first target is hit, I'll just set my stop to 40%-50% profit and let it run. That's my plan we'll see how things go.