The pair is currenty evolving in the cloud of the H4 chart. As shown in the lower chart (line break chart to remove "noise"), price is testing an oblique trend which is more or less in the middle of a narrowing channel. We may now expect the price to attempt to break this line and test a first support at 0.637 then dive to a lower level which was seen back in the middle of 2015.
Ichimoku indicates a clear rejection of the SSB which confirms the bearish trend has a good momentum. At the beginning of the year, a twist was present and the price tried to reach the Kijun but failed miserably. It was not until 21th that the Kijun was finally broken. However the correction is already on its way to get out of the cloud.
Therefore a short trade could be foreseen if the Kijun is broken and the lagging span manages to cross the price candles that are very thin at the current lagging position. These two criterias help to minimize the risk taken by going into the trade.
TP is set to the Sept. 2015 lows and SSB is the reference for the stop loss.
Some fundamentals: www.dailyfx.com/fore...e-Cut-BetstofTY.html
Hope you enjoy.
Ichimoku indicates a clear rejection of the SSB which confirms the bearish trend has a good momentum. At the beginning of the year, a twist was present and the price tried to reach the Kijun but failed miserably. It was not until 21th that the Kijun was finally broken. However the correction is already on its way to get out of the cloud.
Therefore a short trade could be foreseen if the Kijun is broken and the lagging span manages to cross the price candles that are very thin at the current lagging position. These two criterias help to minimize the risk taken by going into the trade.
TP is set to the Sept. 2015 lows and SSB is the reference for the stop loss.
Some fundamentals: www.dailyfx.com/fore...e-Cut-BetstofTY.html
Hope you enjoy.
