After the breakout of the descending triangle pattern the market had a strong bearish rally. The market has now formed a pull back up to a key area where a few factors come into play:
1. Moving average pinned
2. Supportive trend line tested as resistance
3. Fibonacci levels met
4. Bearish pin bar
Let's take a look at the chart...
The 13.85 level offers strong support when I look back at the historical swings, so it may be a tough one to break but the bears have shown strong momentum from November 2019 to date. Based on the current entry point the 13.85 level will not offer a good risk to reward - targeting the 13.30 region will offer a risk to reward ratio of 1:4 however I would be attentive to this position once the market reaches the 13.85 level.
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