Time frame: D1
Technical analysis: The chart shows that the price of the currency pair is in the range between 1.6320 and 1.5970 levels. At the moment, it has reached the resistance of the channel again, even managed to test 50% of Fibonacci. After the test, the price quickly returned to close the day under the resistance of the channel and form a doji candle. This signals that sellers are outweighing buyers and more likely to see a new downtrend here.
Indicators: At this stage, 50 and 200 periodic averages play a supportive role.
DeM rotates in and out of the conquered territory, which supports sales.
Aggressive Entry: From current levels with a stop at 1.6440.
Conservative Entry: When it closes today’s day bar and confirms the downward movement. Stop 1.6440
Alternative scenario: If the diagonal resistance breaks and 50% on Fibonacci, we will see the price rise at least to the next significant resistance level at 61.8%.
Trader Milko Zashev