Multi Timeframe Analysis
My trading philosophy: We don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace in the direction of the D1 master trend.
Monthly
The pair trended upward until January 2021 and began a retracement as hedge funds started closing long positions to grab profit
The pair is still above strong monthly support of 1.1918 and we expect this to be tested and potentially rejected to the upside
Weekly
The pair continues to range aimlessly weekly support of 1.1865 and below a difficult resistance of 1.2269. The price tested the latter repeatedly , was rejected and is now moving down
Daily
The pair trended downwards since the week of Jan 7 after failure to breach weekly resistance. The pair is currently in a bullish retracement to the upside but I expect a continuation to the downside after the retracement hits the 38.2% fib levels at 1.2030.
Recommendation
Monitor price action on the 4H chart for bearish ADX, MACD. When the price goes below the H4 20-period EMA you have a potential entry at 1.2020 for a risk free trade to the downside.
My trading philosophy: We don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace in the direction of the D1 master trend.
Monthly
The pair trended upward until January 2021 and began a retracement as hedge funds started closing long positions to grab profit
The pair is still above strong monthly support of 1.1918 and we expect this to be tested and potentially rejected to the upside
Weekly
The pair continues to range aimlessly weekly support of 1.1865 and below a difficult resistance of 1.2269. The price tested the latter repeatedly , was rejected and is now moving down
Daily
The pair trended downwards since the week of Jan 7 after failure to breach weekly resistance. The pair is currently in a bullish retracement to the upside but I expect a continuation to the downside after the retracement hits the 38.2% fib levels at 1.2030.
Recommendation
Monitor price action on the 4H chart for bearish ADX, MACD. When the price goes below the H4 20-period EMA you have a potential entry at 1.2020 for a risk free trade to the downside.