The Rising Wedge pattern seen on the chart (above) has its uptrend line coming in at the same level as the 34ema high.
The set ups scenarios are classic trending patterns opportunities:
The “backbone” or “decision level” of an uptrending pattern is the lower uptrend line as it support and there therefore holds the key to either the swing entry continuation buy or the trend reversal short.
The first consideration should be the trend following which means watch for the continuation buy off the 34ema high/uptrend line support. BUT what IF prices pierce this level?
The 23.6 Fibonacci Retracement is usually too shallow a correction for me however it’s a level I would be watching for near term support regardless because it is coming in near the minor psychological level of 1.5080.
But I think the reversal would gain momentum lower if prices break the wedge uptrend line as well as the 38.2% Fibo Retracement and the 34ema low. This would means the short would trigger as prices break 1.5060.