Technical Analysis and Market Sentiment:
The dollar has been on the rise for an extensive of time and there is bound of being some major market correction when the rally finally exhausts.
The exhaustion was prominently identified as the price fell into a sideways movement and finally as the price broken below a previous swing low and below the major resistance zone.
I waited for a retracement channel and finally after 2 waves of retracement, the price completed the retracement channel at FR88.6%
Short with 1/2 risk as I’ve traded its mirror pair, EURUSD. Stop loss placed at 20 pips above FR88.6% .
Trade was executed within market hours and 8 hrs before the next major news release.
Take Profit 1: 1.0078 (FR78.6% of retracement channel at immediate support level)
Take Profit 2: 1.0049 (between FR127.2% and support level)
Take Profit Final: 0.9988 (support level just above FR261.8%
Initial follow-up plan: Shift stop loss to 1.0116, swing high of retracement channel, once the price reaches TP1. If the price appreciates and closes above FR88.6%, exit 1/2 position, and if closes above FR100%, full exit.