Initially, when I saw this trade opportunity, my trend line position had made it look like price had just broken through and was on its way up. However, after adjusting my trend line, I saw that price just bounced off the resistance and was trickling its way back down the channel. Unfortunately, I entered the trade when price "broke" through the trend line and am now sitting in the red. However, looking at the 15Min and 1HR charts, we see the potential formation of a double bottom at 122.182. I then decided to apply the Fib retracement tool and it seems that price is hovering at the 38% Fib line which could indicate that price is ready to reverse and move to the upside and complete the descending channel pattern.
It is also possible for price action to continue falling all the way down to 118.498 before shooting upwards. Thinking retrospectively, I should have waited longer before entering this trade to see how the market played out. Especially considering that price action is currently in nomansland on the Daily descending chart pattern.
It is also possible for price action to continue falling all the way down to 118.498 before shooting upwards. Thinking retrospectively, I should have waited longer before entering this trade to see how the market played out. Especially considering that price action is currently in nomansland on the Daily descending chart pattern.