On a weekly time frame, the market has formed a huge bearish engulfing pattern right at the resistance zone. This suggest a strong selling pressure.
On a daily time frame, the strong selling pressure shown last week appears to continue and may retest the support zone 1.0520 - 1.0490 however we may see a period of consolidation before it continues it's downward momentum.
A retest of 1.0710 would be a good selling opportunity and the TP level at 1.0520. However if the market continues to go down, the risk to reward is no longer in our favor thus it is be best to wait for the market to retest the support zone 1.0520 - 1.0490 and look for bullish evidence and then place a buy order.
SL @ 1.0809
Sell stop @ 1.0710
TP @ 1.0520
On a daily time frame, the strong selling pressure shown last week appears to continue and may retest the support zone 1.0520 - 1.0490 however we may see a period of consolidation before it continues it's downward momentum.
A retest of 1.0710 would be a good selling opportunity and the TP level at 1.0520. However if the market continues to go down, the risk to reward is no longer in our favor thus it is be best to wait for the market to retest the support zone 1.0520 - 1.0490 and look for bullish evidence and then place a buy order.
SL @ 1.0809
Sell stop @ 1.0710
TP @ 1.0520
