Hi everyone,
This currency pair has the look of a potential head and shoulder. I've shown it in the 4 hour time frame on the chart below.
The fast stochastic (14:3) on the longer term weekly chart below has recently crossed (%K moving below %D) and is up in the oversold zone. This is often a supportive development for bearish reversal trades in shorter time frame charts.
A standard approach to entry strategy with head and shoulder patterns is to sell on a confirmed break of the blue neck line shown on the chart. Some traders apply a bit of a filter waiting for price to get well clear of the neck line to reduce whip saw losses from false breaks.
If we get a set up, I'll post some thoughts on exit strategies (stop loss management and profit objectives)
Cheers
Ric
CMC Markets