The Daily Chart has just broken the Support of its large range with a bearish candlestick. This indicates the start of a sharp downtrend breakout that could take the pair to 88.00 in the next few days. The Range is defined by the Resistance at 94.17 with Support at 92,30.
This Range is also the Right Shoulder of a Head and Shoulders pattern seen on the Daily Chart. The Left Shoulder was formed at the Resistance 94,47 on September 19, 2013 and the Head at Resistance 95,67 on October 22, 2013
Entry on this trade can be done with a Stop Loss above the 4H Consolidation Triangle area. An aggressive limit order of 200 pips can target 89.00 with a m uch larger target at the Double Bottoms Support of 86,38. Along the way, the first target would be the Support of 90.71.
Setup
Entry - 91.20
Stop Loss - 92.40
Limit - 89.00
This Range is also the Right Shoulder of a Head and Shoulders pattern seen on the Daily Chart. The Left Shoulder was formed at the Resistance 94,47 on September 19, 2013 and the Head at Resistance 95,67 on October 22, 2013
Entry on this trade can be done with a Stop Loss above the 4H Consolidation Triangle area. An aggressive limit order of 200 pips can target 89.00 with a m uch larger target at the Double Bottoms Support of 86,38. Along the way, the first target would be the Support of 90.71.
Setup
Entry - 91.20
Stop Loss - 92.40
Limit - 89.00
