Good Morning Forex Friends
Yesterday Analysis expected a correction from 1197-97 to 1167.Price move in consolidation phase and close a doji in daily chart.I am still expecting a correction to buy from better price.I am sharing different time frame chart patterns to give a logical view.
Daily closing of yesterday candle was doji at resistance 1191-93 indicating a confusion between bulls and bears.I am expecting a downside movement today and this movement may end around 1161-67 level.We will look for buy entry from this level.Please keep in mind if price doesn’t make correction and close above the resistance in daily chart then this resistance may become support for buyers and next target may 1213 and then 1235.
4 Hour Chart
Using 4 hour chart we can see couple of reversal candles and momentum for selling increasing.This is the earlier signal for short term selling.We will look for buy entry from the previous channel support line.I mention the buying zone in the chart below.
1 Hour Chart
Small flag pattern in 1 hour chart is forming.Flag pattern indicating continuation in trend.confirmation of downside move will be done after breaking the support of flag.Our entry point is the same as above but keep in mind if this flag pattern break from upside we will buy from the resistance.So i am also sharing alternate trade recommendation today.
Buy half position from 1173
Buy More from 1161-67
Stoploss Below 1153
Alternate Buy Stop
Buy stop 1203-5
Take profit 1 : 1213
Take profit 2 : 1235
Stoploss below the support 1189
This alternate is only valid if price break and close above the resistance in daily chart
Never risk more then 2% of your total account capital.Always trade with proper risk management plan.
Feel free to comment below if you have any concern regarding charts and analysis.Your feedback is always welcome.
Wish You Good Luck & Happy Trading
Mati Ur Rehman
Gold Analyst @ forex.today