Bearish outside divergence (purple arrows) has given way to sell off in price signalled but the massive drop on the 19th (01:00hrs on H4) . Now that price has reached the end of its retracement (at the time of writing), as it approaches the SMA I predict that price will find resistance which would cause a further decline till it reaches Support at 107.70 (white line) by today . Then depending how strong the sell off momentum is I would expect price to reach 107.06 (dotted blue line) by early next week. However I would like to see a convincing bearish candle way from the SMA, preferable on the H4 chart so I can entry trade. For now its a wait & see.
Trade active
Trade closed: target reached:
So a correctly predicted from last Friday price reached my final Take Profit price at 107.05 just after 1600hrs yesterday, bagging in a 82pip profit. However i feel this is still a Bear market so will be looking to continue with the down trend & place another short position.