Analysis of Current Market Trends Price Overview Currently, the price is hovering around the 1.3726 range. There is a potential for it to breach the low of 1.3720, which would establish a new lower low pattern. Conversely, if the price rallies, it could foster a higher high if it successfully surpasses the resistance at 1.3753.
Indicators Analysis MACD Indicator The MACD indicator suggests that a bullish divergence signal may occur when the histogram fails to align with the falling price volume. This divergence is expected to happen if the low of 1.3720 is breached.
Stochastic Indicator The Stochastic indicator is currently in the oversold zone (20-10), indicating that the price decline may soon reach a selling saturation point. This hints at a potential reversal or correction in the near future.
Trading Recommendations Bearish Trend Continuation: Maintain a focus on the bearish trend direction for now.
Sell Entry Position: Wait for an upward correction in the price around the SBR at 1.3794 before placing a SELL order.
Confirmation Criteria: It is crucial for the Stochastic indicator parameters to cross into the overbought zone (90-80) before finalizing a selling position.
Target Placement Take Profit: Set the profit target close to the low of 1.3720.
Stop Loss: Position the stop loss at the high price of 1.3855. Currently, all four foundational indicators are signaling a sell. However, I anticipate a temporary upward correction before the price resumes its decline towards the lower boundary of the H1 channel.
Short-term Corrections On the H4 chart, following a significant price drop, the movement has slowed down, leading me to believe a corrective rally may occur next. The initial three foundational indicators have signaled a buy, indicating some potential for upward movement.
Personal Trading Activity I have recently opened two buy positions and have set profit levels accordingly. Although the H4 chart presents mixed signals from the foundational indicators, there remains an upward target that must be achieved in conjunction with my profit-setting levels.
Summary and Recommendations At this juncture, buying at the current price with defined profit targets seems sensible. However, once these targets are reached, it would be prudent to shift towards selling, as the prevailing downtrend is still intact, with anticipated growth appearing more as a corrective move rather than a strong upward trend. This expected movement is clearly outlined on the chart, so remain vigilant and prepared! As prices continue to decline (or potentially reverse), we must closely monitor for any signs of reversal. If the price shifts upward, adjustments to our strategy may be necessary.
