Price has tested this resistance area for 6 months. There is confluence with R1 pivot support. A Bearish Engulfing pattern formed two days ago, and it's resistance was tested by Friday's candle. Rhere was a walk up the BB and now we have a squeeze. There is bearish divergence. Stochastic has turned down and the signal line has crossed. Finally, for Elliot techs, I have laid out one possible count which show a minor impulse wave up, and then the correction wave A BC. if the count is correct , price is at the beginning of Wave C. Main guideline for correction wave is wave C and A are often equal in amplitude - this would give us a move of around 300 pips.
Very good risk reward as out stop can be set to just above the R1.
You can enter now or wait till price break below the low of the engulfing pattern. I'm going now. 1st target at Pivot level P. 2nd target near the 1.29000 level in keeping with Elliot wave C guideline above
Very good risk reward as out stop can be set to just above the R1.
You can enter now or wait till price break below the low of the engulfing pattern. I'm going now. 1st target at Pivot level P. 2nd target near the 1.29000 level in keeping with Elliot wave C guideline above
