Sell below 134.15. Stop loss at 134.92. Take profit at 132.01.
Reason for the trading strategy (technically):
Price continues to test our major resistance at 134.15 (Fibonacci extension, horizontal swing high resistance) and we expect to see a drop form this level to at least 132.01 support (Fibonacci retracement, horizontal pullback support). Do take note of the bullish ascending channel we’re seeing as we might see price bounce off this level and only a break of the channel would see a stronger drop towards our profit target.
Stochastic (34,5,3) is seeing major resistance at 96% and we expect a drop from this level. It also displays good downside potential for our drop.
Reason for the trading strategy (technically):
Price continues to test our major resistance at 134.15 (Fibonacci extension, horizontal swing high resistance) and we expect to see a drop form this level to at least 132.01 support (Fibonacci retracement, horizontal pullback support). Do take note of the bullish ascending channel we’re seeing as we might see price bounce off this level and only a break of the channel would see a stronger drop towards our profit target.
Stochastic (34,5,3) is seeing major resistance at 96% and we expect a drop from this level. It also displays good downside potential for our drop.