Analysis
1. **Trend Breakdown:**
* The chart shows a clear **bearish structure** developing after a strong rally to the 1.58800 area (Fibonacci 1.618 extension level).
* Two upward trendlines were broken successively, confirming bearish momentum.
2. **Fibonacci Levels:**
* The retracement from 1.58800 down to the 0.382 level (1.54586) has held significant importance.
* Price action is respecting the **Fibonacci retracement zones**, with rejection near the 0.786 and 1.0 levels (1.56915 - 1.57109).
3. **Bearish Flag Pattern:**
* A small **bearish flag/pennant** formed after a strong drop, which has now broken downward.
* This confirms the **continuation of the bearish move**.
4. **Volume Confirmation:**
* Volume spikes during the initial sell-off and again on recent bearish candles suggest **strong selling interest**.
5. **Trade Setup (Marked on Chart):**
* **Entry:** Near 1.56443
* **Stop-Loss:** Around 1.57109 (just above recent highs)
* **Target:** Around 1.54848–1.54500 zone, aligning with prior demand and 0.382 Fib level
---
**Conclusion:**
The chart signals a high-probability **short setup**, backed by a break of structure, Fibonacci confluence, bearish flag breakdown, and volume. A continued decline toward the 1.54500–1.54800 region is likely, provided the price stays below 1.57100.
1. **Trend Breakdown:**
* The chart shows a clear **bearish structure** developing after a strong rally to the 1.58800 area (Fibonacci 1.618 extension level).
* Two upward trendlines were broken successively, confirming bearish momentum.
2. **Fibonacci Levels:**
* The retracement from 1.58800 down to the 0.382 level (1.54586) has held significant importance.
* Price action is respecting the **Fibonacci retracement zones**, with rejection near the 0.786 and 1.0 levels (1.56915 - 1.57109).
3. **Bearish Flag Pattern:**
* A small **bearish flag/pennant** formed after a strong drop, which has now broken downward.
* This confirms the **continuation of the bearish move**.
4. **Volume Confirmation:**
* Volume spikes during the initial sell-off and again on recent bearish candles suggest **strong selling interest**.
5. **Trade Setup (Marked on Chart):**
* **Entry:** Near 1.56443
* **Stop-Loss:** Around 1.57109 (just above recent highs)
* **Target:** Around 1.54848–1.54500 zone, aligning with prior demand and 0.382 Fib level
---
**Conclusion:**
The chart signals a high-probability **short setup**, backed by a break of structure, Fibonacci confluence, bearish flag breakdown, and volume. A continued decline toward the 1.54500–1.54800 region is likely, provided the price stays below 1.57100.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.