In this trade, I’m going to enter with a short position.
Analyzing the pair on the higher time-frames, it has reached a reversal zone for the second time, previously located around the 158.874 price level.
Moving to the daily time-frame and after the pair hit that same area twice again, there’s the possibility of opening a sell position — but a few points should be considered:
**1st point: Pay attention to the reversal the pair is currently making after reaching the area near 139.576 *and try to understand whether a future pullback might occur, which would strengthen the case for the sell (a Fibonacci tool can be used as support for this).
*Something similar happened between January 16, 2023 and December 28, 2023.
**There’s also the chance that the pair might continue its downward movement without making a reversal or pullback.
2nd point: There’s also a possibility that the pair is in a consolidation zone and could later make a strong bullish move, breaking through the reversal zone around 158.874 and invalidating the selling opportunity.
Taking everything mentioned above into account — and despite the uncertainty around this pair’s future movement — it’s possible to consider both buying and selling at different moments. That’s why it’s important to closely monitor all the movements and try to time it right, because I believe that when the pair chooses a direction, it’ll move with strength.
In this analysis, several moving averages and a Parabolic SAR were also used, and they should be given close attention.
Analyzing the pair on the higher time-frames, it has reached a reversal zone for the second time, previously located around the 158.874 price level.
Moving to the daily time-frame and after the pair hit that same area twice again, there’s the possibility of opening a sell position — but a few points should be considered:
**1st point: Pay attention to the reversal the pair is currently making after reaching the area near 139.576 *and try to understand whether a future pullback might occur, which would strengthen the case for the sell (a Fibonacci tool can be used as support for this).
*Something similar happened between January 16, 2023 and December 28, 2023.
**There’s also the chance that the pair might continue its downward movement without making a reversal or pullback.
2nd point: There’s also a possibility that the pair is in a consolidation zone and could later make a strong bullish move, breaking through the reversal zone around 158.874 and invalidating the selling opportunity.
Taking everything mentioned above into account — and despite the uncertainty around this pair’s future movement — it’s possible to consider both buying and selling at different moments. That’s why it’s important to closely monitor all the movements and try to time it right, because I believe that when the pair chooses a direction, it’ll move with strength.
In this analysis, several moving averages and a Parabolic SAR were also used, and they should be given close attention.
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.