. Due to the market reaching the highest highs since 2018, I expect the market to reverse, however there is a possibility price could reach up to the 1.20000 level and the market is just retracing.
. As we can see, I have a set-up on the 1H chart where an had formed, the market had broke above the major area of resistance identified on the , formed a new high and now the market is moving strongly to the downside, back into this major area of resistance, this could be a retracement and we see a opportunity to get involved in a long position, as we are now at the 78.6% fib level, if we see strong moves, then i will be looking for another break of structure, retest and then enter.
. On the other-hand, if the sellers keep control of the market and the level of resistance is respected, then i will look for a break of resistance then a move to test an area of support. From there i will expect the market to retest the area of resistance identified on the , i will then expect a break of support and a retest to confirm a shift of support into resistance. If this happens, i will place a sell order from a fib r?etracement.
Comment below if you found this idea helpful, and if you decided to take this trade, did you make profit? :)