If you glance at the daily chart for this pair, you can clearly see that price is rising in a channel formation. However, the recent high has met the same resistance as the previous high at 1.03. The strength of this resistance would provide a good entry for any bearish harmonic pattern.
With that in mind, from the most recent high, we have a bearish 5-0. Going short form the 50% retracement level of the impulse wave, it is not implausible that price will drop to up to 88.6% of the last wave before heading back towards resistance. I'm taking this 5-0 with a trailing stop loss and a final TP level of 0.995- the 88.6% retracement level of the last correction wave.
5-O ratios
B: 1.13-1.618
C: 1.618-2.24
D: 50%
With that in mind, from the most recent high, we have a bearish 5-0. Going short form the 50% retracement level of the impulse wave, it is not implausible that price will drop to up to 88.6% of the last wave before heading back towards resistance. I'm taking this 5-0 with a trailing stop loss and a final TP level of 0.995- the 88.6% retracement level of the last correction wave.
5-O ratios
B: 1.13-1.618
C: 1.618-2.24
D: 50%
