3 confluences for this trade
- price rejected the upper trendline, sticking to bearish structure plan
- price broke bullish trendline with a strong bearish impulse
- price is forming a falling wedge
This is very similar to a trade I took on GBPCAD/EURCAD recently which was a 300 pip move.
Confluences for this trade:
- 4th test of 1.27
- Price has consolidated below our entry and strongly pushed back up
- Price has consolidated above our target and strongly pushed back down.
- Forming bullish trendline supports price also
As you can see on the chart we have 3 major confluences.
Test and Rejection of 200MA (This shows us that we are in a bearish market right now )
We are also in a long term downtrend which shows us that overall this pair is going to go down
Once we see a breakout of this rising wedge I would recommend placing a sell order with SL above...
1/2 Month uptrend after 50/200 EMA crossover followed by bearish momentum shown on MACD
Strong signals to sell as MACD crossover and histogram displays negative.
Tested 1.297 4 times with strong resistance.