The chart shows the movement after the reached high 1.4281. It is obvious that the fall to 1.4014 is corrective in nature. The subsequent rise is also corrective in nature in my opinion. This is a signal for a possible triangle i.e. a few week consolidation between 1.4014 and 1.4281 could be seen. From such point of view is reasonable to enter short position for a deep retracement of the last rise. However I will not sell from the current levels because there are no reliable criteria for a stop loss for an eventual short position â€“ this possible triangle allows a rise above 1.4281. So I will sell only if I see a sharp retrace of the last wave c shown on the chart with target 80.9 % retracement.
Trading strategy: 09:30 EST; 13:30 GMT
Sell on break of 1.4168 (sell stop order at 1.4167), stop loss - 1.4247, target â€“ 1.4060
Confidence level â€“ moderate
This analysis has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.