This time I have annotated the chart with my prediction highlighting the regions I will be paying attention to before checking lower timeframes for confluences in the chart confirming my theory and placing a trade.
Here we see key support and resistance levels indicated between 149 - 157.
I predict a head & shoulders formation off the 157 line I have indicated that will lead to a bear move towards the 155 region.
Eventually returning to test the 149 region.
Downtrend indicated from higher time frame analysis.
Once support breaks at 1.07693 I am confident we will see a continuation to the TP1.
We will then see signs of some consolidation between 1.07693 and 1.07074 before continuing towards TP2 at 1.06368.
- RR 3.55
TP - 1.05863
SL - 1.08960
RR - 3.69
Downward trend continuation confirmed on higher timeframe analysis. TP should be hit by Sept 31 / First week in October.
Currently ranging between 132.527 as a sub low range and 133.884 as a sub high.
In general the higher timeframes indicate a downtrend. I have circled the double tops formed on the 1H timeframe because at Both these points we see a the bears pushing to break the resistance.
I assume we will range in the channel I have indicated before proceeding through the zones...
a prediction of an upward channel movement to the previous area of resistance to TP1 (take profit target 1). TP2 realistically is what I would conservatively set to have a sensible RR (risk to reward ratio) of 2.32. depending on the strength of the bullish movement I would look at the TP2 zone and see if there is still momentum to push for zone 3.
