On the hourly chart this market has been trending down quite nicely, with lower highs and lower lows.
- Monthly pivot point – 1.1405
- Weekly pivot point – 1.1400
- ATR stop – 1.1384
- Daily R1 pivot point – 1.1395
- Round number – 1.1400
Given there are so many resistance levels, a short with a stop loss above them all looks like a good short term day trade.
The daily pivot point at 1.1374, will act as support but expectations are that this will be broken.
Targets become the next support levels, which include:
- Daily S1 pivot point – 1.1338
- Monthly S1 pivot point – 1.1325
- Daily S2 pivot point – 1.1316
- Weekly S1 pivot point – 1.1311
This day trade is following the trend and using major confluence levels as protection and so is seen as a high percentage trade.
The risk reward ratio is not amazing but with a stop loss at 1.1415 and a target of 1.1327, the ratio is at 1:1.4, which is above the recommended 1:1.
Disclaimer: This should not be used as investment advice and is only an opinion. Do your own research before looking to risk your own capital in the financial markets.