On the 4hr and daily, it can be seen that a bear flag is being formed.
It is possible the market will make one more push to the upside forming a Higher - High before price reverses.
Price is currently sitting on support at 111.300, I will monitor closely how price reacts to this level.
If any bullish momentum on the smaller timeframes is spotted (1hr, 15m) I will consider taking a small position of a long trade (50 pip TP1, and 25 pip SL - 2:1 RR).
If the long trade is taken, I will look for a major reversal around the 112.0 - 113.0 region.
If no bullish momentum can be spotted around the current market price and support of 111.300 , it is possible that the bulls are exhausted and the price plummets towards the anticipated downside.
I will take a short trade around the price of 111.00 and 110.700, previous support depending on how well this zone holds, if it doesn't a major move down is expected.
It is possible the market will make one more push to the upside forming a Higher - High before price reverses.
Price is currently sitting on support at 111.300, I will monitor closely how price reacts to this level.
If any bullish momentum on the smaller timeframes is spotted (1hr, 15m) I will consider taking a small position of a long trade (50 pip TP1, and 25 pip SL - 2:1 RR).
If the long trade is taken, I will look for a major reversal around the 112.0 - 113.0 region.
If no bullish momentum can be spotted around the current market price and support of 111.300 , it is possible that the bulls are exhausted and the price plummets towards the anticipated downside.
I will take a short trade around the price of 111.00 and 110.700, previous support depending on how well this zone holds, if it doesn't a major move down is expected.