As per the 4H graph, you can see the following:
- The pair is trading within an ascending triangle.
- The pair is struggling to make higher highs and higher lows indicating that it is losing strength.
- There is a head and shoulders pattern indicating a trend reversal from bullish to bearish.
- RFI indicates that the pair is losing strength also.
Option 1 (Preferred): Look for a breakout of the ascending triangle to the downside, then a retest and rejection. This will indicate a pattern change. Also, there is a lot of downside until reaching the strong support area as evident in the graph.
Option 2: Trade within the ascending triangle. I don't see much upside here given that the area of strong resistance is within the triangle and we are seeing that the pair is failing to make higher highs and higher lows. Not a lot of potential upside here.
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- The pair is trading within an ascending triangle.
- The pair is struggling to make higher highs and higher lows indicating that it is losing strength.
- There is a head and shoulders pattern indicating a trend reversal from bullish to bearish.
- RFI indicates that the pair is losing strength also.
Option 1 (Preferred): Look for a breakout of the ascending triangle to the downside, then a retest and rejection. This will indicate a pattern change. Also, there is a lot of downside until reaching the strong support area as evident in the graph.
Option 2: Trade within the ascending triangle. I don't see much upside here given that the area of strong resistance is within the triangle and we are seeing that the pair is failing to make higher highs and higher lows. Not a lot of potential upside here.
Like or comment if you have enjoyed this analysis. Thanks!