Alternative bat as a test of the broken channel
Reading the chart
After the pair broke out to the upside, it came back to test the broken channel.
Now, this breakout represented itself as a completed harmonic pattern: the alternative bat.
Also, the RSI (7) is heavily oversold and comparing this strength with the previous low (close) it tells me that the bears were sold out too soon. Therefore, this could mean a hidden bullish divergence and should indicate that the retracement upwards should continu.
Setup
Entry: 0.6581
SL: 0.6547
target 1: 0.6640. risk/reward: 1:1.74
target 2: 0.6677
target 3: 0.6737
After the pair broke out to the upside, it came back to test the broken channel.
Now, this breakout represented itself as a completed harmonic pattern: the alternative bat.
Also, the RSI (7) is heavily oversold and comparing this strength with the previous low (close) it tells me that the bears were sold out too soon. Therefore, this could mean a hidden bullish divergence and should indicate that the retracement upwards should continu.
Setup
Entry: 0.6581
SL: 0.6547
target 1: 0.6640. risk/reward: 1:1.74
target 2: 0.6677
target 3: 0.6737