Fibonacci retracement levels were drawn from swing high at about price level 0.9845 to the most recent swing low at about 0.9650. Another Fibonacci retracement tool was drawn from swing high at about price level 0.9785 to the most recent swing low (in between price 0.9650 and 0.9635) -- clusters were formed.
To narrow down to the Fibonacci cluster that is most probable to stop the rally, a trend line was drawn (the thick black trend line) using the close from on 4-hour time frame. The thin black trend line was drawn using the close prices of recent Highs on 1-Hour time frame -- trend line cluster formed as a result.
A confluence between the Fibonacci cluster and the trend line cluster is a good point to go SHORT. As it stands, the Bulls will hit the confluence at around 0.9770. I will be observant as to what candle stick pattern forms when price hits this point. A SELL at this price would mean a targeted price which is lower than the most recent low (below 0.9650). However, since price seems to have formed a higher low (SWING B), the bulls may just be warming up for a smooth ride.
Oseni Moshood ( Moshow) is a physicist, a blogger and a spot trader with years of experience. He trades only price actions partly because he thinks Economics is boring; or, probably because he failed Economics; and he loves fine artistic works.
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