The chart is marked up using Daily time frame and then the H4 time frame. The support and resistance
lines are drawn from previous times when prices failed to break them and the lines and zones are named accordingly. The trend seems to go upward after a false breakout and you can clearly see that it is an upward trend. So we know that going long is the most probable winning option, however, we await for the price to reach a new bottom. This bottom is marked up at the zone between the two marked up yellow circles due to following reasons:-
1-one being a strong pivot point
, H4 buy zone as well as trend line
connecting point, taken from the previous LOWS;
2-and the other circle being the very point, the 200 is currently resting.
The zone itself is marked as the H4 buy zone. The pips difference between the two points is 16 pips i.e. 110.70 and 110.54, thus allowing a buy opportunity to arise for those limited to 20 pips stop losses and a potential TP1 at 111.30, allowing a potential 60 pips gain.
Risk reward ratio is 3:1.
Results may vary. Happy trading…!