Daily- A double bottom pattern can be identified, indicating the end of trend
price is currently trading at neckline of pattern,
4HR- A H&S pattern can also be identified inside of the double bottom, which strengthens indication of an upcoming reversal.
Price has not broken previous LL but found support at this level, therefore IF price breaks above neckline of 106.850 on 4HR then i anticipate price to continue to the next level of support 108.000 and long term to 109.000
A conservative entry would be to wait for price to break and pull back to neckline before entering, which would not only confirm the reversal but give a smooth entry
An aggressive entry would be to enter on Second bar after break of neckline to secure all pips.
i suggest placing stops 30pips below neckline to secure trade.
price is currently trading at neckline of pattern,
4HR- A H&S pattern can also be identified inside of the double bottom, which strengthens indication of an upcoming reversal.
Price has not broken previous LL but found support at this level, therefore IF price breaks above neckline of 106.850 on 4HR then i anticipate price to continue to the next level of support 108.000 and long term to 109.000
A conservative entry would be to wait for price to break and pull back to neckline before entering, which would not only confirm the reversal but give a smooth entry
An aggressive entry would be to enter on Second bar after break of neckline to secure all pips.
i suggest placing stops 30pips below neckline to secure trade.