This week’s analysis is going to happen on the weekly timeframe. Price has been trading within an ascending channel for 5 months. Therefore we’re in an uptrend. The occurrence of the price ceiling validates bullish weakness and bear power at this point. Last week’s candle stick closed as a hanging man. A candlestick which shows a high probability of a reversal or weakness in an uptrend. We can describe this as a trading confluence as well. Combination of a level and a reversal candlestick.
Our trading confluence gives us a reason to believe that this price might reverse and push further down. As usual we have to wait for a confirmation to validate bear dominance at this level. Patience is key and also the name of the game.
Analysis on this pair is going to be on the daily timeframe. Immediately we notice that price has been on a downtrend. The momentum on the downtrend paused momentarily and started consolidating in the form of a triple top. Price has been supported severally by the neckline and hasn’t broken below yet.
This set up is quite clear and direct but not any different from any other in terms of how we approach it. Patience is key for validation of an entry or bias. In order to trade this chart pattern, a close and confirmation below the neckline is needed. Until then, let’s stay put. Since price might rotate bullish and trend upwards like we have seen numerous times before.