Hello Traders, I’m Mani and I’m the writer of Trade 77 section, please follow me on twitter for further updates.
First of all I want to have a review on Kiwi. In the figure below you can see that daily trendline is broken now:
In the daily chart it couldn’t break 0.7410-0.7390 support zone and now I expect it to retrace some pips and get the strength to fall more and breach 0.7400 level.
So where would be the best point to re-short it? Look at the figure below:
Best point to go short is 61.8 fibo retrace which would be the retest of that broken trendline too.
This point is around 0.7490 but I think it might retract a little bit smaller, so I’m going to watch carefully at 38.2, 50 fibo levels and looking for the price action there.
My target is 200sma on daily timeframe which is somewhere around 0.7250.
Cable is the same as Kiwi and it breached the daily trendline:
I’m looking for a retrace here too, retest of the broken trendline would be at 1.5600 area but it might retrace a little bit more and 1.5650 would the best point to re-short it as it is 38.2 fibo level and former support area which is now a resistant area.
So I want to look for reversal patterns in hourly and four hour charts of the pair around those level and short it again. First target would be 1.5400 which is daily 200sma and after breaking of that I will look for 1.5340.
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