Possible head &shoulders formation with confluence trend line.
Looks like a head & shoulders pattern forming on a trend line supporting the possible reversal.
Waiting for confirmation of H/S pattern with a strong bullish momentum break above the resistance area seen in the red box (1.2735 - 1.2768)
However, if price action were to break below the ascending trend line area seen within the green lines we could see a major move down towards 1.2040.
If H/S form with a break above the resistance area:
SL - 1.2724
Buy around - 1.2790
TP1 - 1.2840
TP2 -1.2890
TP3 -1.2990
If H/S fails and price breaks ascending trend line:
If a strong bullish candle breaks through the 1.2500 handle enter or wait for a pullback to approximately 1.2500.
SL - 1.2530
Sell - Approx. 1.2500
TP1 - 1.2450
TP2 - 1.2400
TP3 -1.2200
P.S opening a position at the bottom of the right shoulder could be a possibility if there is a strong reversal signal (pin bar etc.) in a lower time frame (1hr or 4hr)
Happy Trading
Waiting for confirmation of H/S pattern with a strong bullish momentum break above the resistance area seen in the red box (1.2735 - 1.2768)
However, if price action were to break below the ascending trend line area seen within the green lines we could see a major move down towards 1.2040.
If H/S form with a break above the resistance area:
SL - 1.2724
Buy around - 1.2790
TP1 - 1.2840
TP2 -1.2890
TP3 -1.2990
If H/S fails and price breaks ascending trend line:
If a strong bullish candle breaks through the 1.2500 handle enter or wait for a pullback to approximately 1.2500.
SL - 1.2530
Sell - Approx. 1.2500
TP1 - 1.2450
TP2 - 1.2400
TP3 -1.2200
P.S opening a position at the bottom of the right shoulder could be a possibility if there is a strong reversal signal (pin bar etc.) in a lower time frame (1hr or 4hr)
Happy Trading
Comment:
Watch out for news releases this week. NFP on Friday could be the catalyst for the momentum we are looking for!