Chart: 4 Hour
4HR Trend: Bearish (below 50 EMA)
Dominant Trend: Bullish (D, W, M)
Bearish Evidence:
1. Daily chart shows price completing the peak of the right shoulder ( head & shoulders pattern)
2. Price breaks trendline support on 4hr chart - now due to retest trendline resistance
3. Daily chart shows three inside down candlestick pattern rejecting key daily resistance level @ 1.0100
Notes:
This pair is a risky short to take considering how close the 50 EMA is to the current market price.
However, this does meet my entry criteria to go short, so the position must be taken.
I'm now waiting for price to retest 1.0100 before going short - stacking probability in my favour.
4HR Trend: Bearish (below 50 EMA)
Dominant Trend: Bullish (D, W, M)
Bearish Evidence:
1. Daily chart shows price completing the peak of the right shoulder ( head & shoulders pattern)
2. Price breaks trendline support on 4hr chart - now due to retest trendline resistance
3. Daily chart shows three inside down candlestick pattern rejecting key daily resistance level @ 1.0100
Notes:
This pair is a risky short to take considering how close the 50 EMA is to the current market price.
However, this does meet my entry criteria to go short, so the position must be taken.
I'm now waiting for price to retest 1.0100 before going short - stacking probability in my favour.