Here is my bias for a perfect short tradesetup:
1. Trendline previously respected.
2. Strong Level of Support And Resistance.
3. Fibo levels (61.8% and 78.6%) respected.
4. Flow With The Trend
Ifff Not?
1.Break the trendline
2. Wait for the next ceiling breakthrough
Gooo Loong! :)
What I See:
1. It broke the consolidation box where it had been past weeks.
2. It's coming its way up for the retest
3. We have the area of S/R on the 61.8% of Fibo.
I See Long Opportunity for this pair because:
1. Respecting the trendline , 3rd touch
2. Area of S/R
3. Level 38.2% of fibo since last impulse of consolidation.
After an area of consolidation of USDJPY for the last weeks, price is at a position where it may break the uptrend where it usted to come , and confirm the shift in momentum that may give of the new ride for the bears.
On the other hand, the second option is that price actually respects the trendline going up, the level of support and we continue a little bit...
What I See :
1. Market has been in an area of consolidation for the past week or so.
2. Price currently is at a level of S/R
3. This same level is the 88.6 of Fibo.
4.The whole sentiment of the market is a DOWNTREND.
5. The Level 100% of Fibo it's a MAJOR REVERSAL AREA in the market.
Looking at the Daily chart for the EURUSD we found a clear HeadNShoulder Pattern. Simple , here are my confirmations for this huge sell:
1. Break SR Level
2. Retest (Pullback)
We can clearly see the respect for the downtrend that we have developing, the support/resistance area where is currently at, and the two levels of fibonacci that the area is, 38.2% for the bigger uptrend and the 88% for the smaller downtrend.
As we can observe the market reached a point where the trend line is again touching it for a movement down, the fibonacci level where is consolidating is a really strong level in price action , or a Mayor Reversal Area for support and resistance.
As the end of a corrective ABC Elliot pattern, the next move is the line BC going downwards , which also converges with a Major Resistance Area historically and goes with the major bearish trend that the FX_IDC:GBPUSD has been stuck into lately .
It just finished a Elliot Wave Pattern and it's retracement ABC, the next move I believe is new trend formation upwards , also there is clear a Resistence/Support zone in that area.
