Long or Short: Short Entry Point: At the open of next week (1.5990) Stop Loss: 50-pips (above bearish engulfing candle high) Profit Target/s: 1.5900 Reward-to-risk Ratio: 2:1 Risk percentage: 2% Indicators: None Trade Rationale:
Mostly a technical trade as I believe the move up is overdone. As you can see, price slightly pierced above 1.6000 but quickly dropped and formed a bearish engulfing pattern. I’m convinced that resistance would hold and price would fall back down to 1.5900.
Trade Adjustments: None