What do we have?
We have a failed attempt to break the uptrend line. The price could not develop a downward movement, but it gave us a local swing low. If we talk about selling in this market, we can use sell-stop pending orders below 1.29500 level. If the price breaks the local swing low, it will confirm the further downward movement.
If you want to buy, you should wait for the breakout above the local downtrend line. But we also have SMA100 and SMA200 above it. That’s why if we talk about buying, I would like to wait for a breakout above these SMAs and the local swing high as well.
For both long and short trade, stop orders must be placed using the local lows and highs. The market can move in both directions, but we can use pending orders in order to catch the right movement in time.
Just don’t forget about the proper money management.