Well this trade is formed off of strictly technicals, not putting into consideration the fundamental aspects of both currencies when trading an odd pair such as this.
So what we have here is price has retraced back up to prior resistance and been quite frankly rejected forming the long legged doji / spinning top which as we all know is sign of sellers re-entering the market and the lack of bidders to push the market higher. So I'm going short on this pair with my first target being the 38.2% Retracement of the previous impulse leg up, and target two of the trade being the next area where I believe buyers will be waiting to attempt to take control once again (also the W1 50 Moving Average). Stop-loss orders will be placed around the 1.9600 area.
W1: Bearish (Long legged doji / Spinning Top)
D1: Bearish (Doji / Evening Star)
4HR: Bearish (double top)
Cheers, and good luck to all =)
So what we have here is price has retraced back up to prior resistance and been quite frankly rejected forming the long legged doji / spinning top which as we all know is sign of sellers re-entering the market and the lack of bidders to push the market higher. So I'm going short on this pair with my first target being the 38.2% Retracement of the previous impulse leg up, and target two of the trade being the next area where I believe buyers will be waiting to attempt to take control once again (also the W1 50 Moving Average). Stop-loss orders will be placed around the 1.9600 area.
W1: Bearish (Long legged doji / Spinning Top)
D1: Bearish (Doji / Evening Star)
4HR: Bearish (double top)
Cheers, and good luck to all =)
