Trade Overview: Entry Zone: Near 1.42500 Take Profit (TP): 1.42100 (Key Support Zone) Stop Loss (SL): 1.42738 (Above Resistance) Risk-to-Reward Ratio: ~2.5:1
Technical Analysis: Head and Shoulders Pattern:
The chart highlights a clear Head and Shoulders reversal pattern, with the right shoulder forming near the 1.42500 resistance zone. This is a strong bearish signal, indicating a potential shift in momentum to the downside.
Rising Wedge Breakout:
Price is showing signs of breaking down from a Rising Wedge, a bearish continuation pattern. Bearish candlesticks indicate selling pressure building near the resistance. Key Resistance Zone:
The 1.42500–1.42700 area has acted as a strong ceiling for price, resulting in multiple rejections. Sellers have shown dominance at this level, reinforcing the bearish bias.
Target Support:
The TP at 1.42100 aligns with a prior support level and demand zone, making it a logical target for the move.
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