Price is consolidating just above a key support level at 1.17541 after a sharp selloff from the 1.1850 highs.
Safer Entry 1.178
Stop Loss 1.18
Take Profit 1 -> 1.173
Take Profit 2 -> 1.171
What We See
Price spiked to 1.1850 mid-session before reversing sharply and breaking below the 200 MA (green) and 100 MA (blue). Price is now consolidating between the 1.17541 support level and the declining short-term MAs acting as resistance. The horizontal black support at 1.17309 is the next significant downside target.
Why It Matters
The failed rally and sharp rejection from highs signals strong bearish momentum. Price retesting the breakdown zone near 1.17541 while MAs remain stacked bearishly above adds confluence for continuation lower.
Risk Note
Medium Risk
Stop loss is placed above 1.17953, the key horizontal resistance level visible on the chart. Risk no more than 1-2% of account capital on this trade given the tight consolidation and potential for volatility.