Why I Think This Trade Could Be Bearish
Overall Downtrend: The descending trendline and consistent Lower Highs indicate sellers are still in control of the market.
Supply Zone Rejection: The price is testing a known supply zone, which often leads to reversals to the downside.
Fibonacci Resistance: Key retracement levels (0.382, 0.5, 0.618) are aligning with resistance zones, adding further weight to the bearish case.
Momentum Weakness: Failure to break above recent highs or the trendline suggests bullish attempts are losing strength.
Action Plan
Entry Confirmation:
Wait for small buy and a rejection from the 1.02996–1.03363 zone with clear bearish candlestick patterns.
Alternatively, sell after a confirmed break below 1.01500 (recent low), as this would signal bearish continuation.
Stop-Loss: 1.0340 above 0.618 (Fibonacci golden ratio)
Take-Profit Targets:
TP1: Near 1.01945 (previous swing low).
TP2: Around 1.01162 (Fibonacci extension).
TP3: Deeper bearish target around 1.00175 or lower.
Bearish Signals to Monitor.
Overall Downtrend: The descending trendline and consistent Lower Highs indicate sellers are still in control of the market.
Supply Zone Rejection: The price is testing a known supply zone, which often leads to reversals to the downside.
Fibonacci Resistance: Key retracement levels (0.382, 0.5, 0.618) are aligning with resistance zones, adding further weight to the bearish case.
Momentum Weakness: Failure to break above recent highs or the trendline suggests bullish attempts are losing strength.
Action Plan
Entry Confirmation:
Wait for small buy and a rejection from the 1.02996–1.03363 zone with clear bearish candlestick patterns.
Alternatively, sell after a confirmed break below 1.01500 (recent low), as this would signal bearish continuation.
Stop-Loss: 1.0340 above 0.618 (Fibonacci golden ratio)
Take-Profit Targets:
TP1: Near 1.01945 (previous swing low).
TP2: Around 1.01162 (Fibonacci extension).
TP3: Deeper bearish target around 1.00175 or lower.
Bearish Signals to Monitor.
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.
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.