The market bounces from 1.15200 level and RSI confirms price reversal in the overbought zone. We can see a bearish divergence formed by the price, MACD and RSI and it’s a strong trend reversal signal. ADX line of DMI indicator falls and it gives a signal that the upward movement is not so strong as before. DMI indicator allows open short trades. MACD confirms downward movement. In spite of the up trend, we have signals confirming the trend reversal and further downward movement. It’s time to sell and we have to spot the entry levels for placing pending orders.
Moving Averages with different periods are the support lines and it will be logical to trade based on breakout signals below these lines. If the price breaks one of these support lines, we’ll join to possible downward movement. Simple Moving Average with period 20 is a good entry level. We can place sell-stop orders below this support line. It’s 1.14300 level. Stop orders must be placed at 1.15300 level which is higher than the local swing high. Profit targets should be based on Simple Moving Averages with periods 50 and 100. If the market moves upward and breaks the resistance level without activation our sell orders, we’ll have to delete them and wait for a new trading opportunity. Recommended risk size for this trade is up to 3% from your deposit.
Profit Targets: 1.13010 and 1.11810