The trigger for a short entry would be a daily close (5 pm EST) below channel support. However, there is a trend line that extends from the October low that was just breached on a 4-hour closing basis.
From here any retest of the 1.1620/30 area as new resistance will likely encounter an influx of selling pressure. Key support comes in at the channel bottom near 1.1510/20. A daily close below that could serve as an opportunity to add to an existing short position.
If we don’t get a retest of the 4-hour trend line below, I will wait for a close below support near 1.1510/20. Either way, the objective is the August low at 1.1260.
Source: bit.ly/2zmMVKp
From here any retest of the 1.1620/30 area as new resistance will likely encounter an influx of selling pressure. Key support comes in at the channel bottom near 1.1510/20. A daily close below that could serve as an opportunity to add to an existing short position.
If we don’t get a retest of the 4-hour trend line below, I will wait for a close below support near 1.1510/20. Either way, the objective is the August low at 1.1260.
Source: bit.ly/2zmMVKp