Following on from yesterday's theme of confluence on CADJPY, I thought to continue looking at other cross pairs for signs of confluence (i.e., multiple reasons to take a trade, all pointing to the same thing).
This one is a little out of character for me - I'm interested in a long, but price has been mostly going down.
My reasons are:
I consider the range between 1.4750 and 1.4950 a zone of accumulation. We saw price dip into that area several times over 2018, and each dip was used as an opportunity for buyers to load up.
So its not unreasonable to assume the same buyers might step in once again. We'll have to see.
The second thing that interests me is how price is coming to rest on the same trendline that capped its upside for so many months.
All we really need now is a dip into 1.4950, a bounce and it'll be time to go long. I'd like to target 1.5200 or thereabouts, but there is potentially a lot more in it.
This one is a little out of character for me - I'm interested in a long, but price has been mostly going down.
My reasons are:
I consider the range between 1.4750 and 1.4950 a zone of accumulation. We saw price dip into that area several times over 2018, and each dip was used as an opportunity for buyers to load up.
So its not unreasonable to assume the same buyers might step in once again. We'll have to see.
The second thing that interests me is how price is coming to rest on the same trendline that capped its upside for so many months.
All we really need now is a dip into 1.4950, a bounce and it'll be time to go long. I'd like to target 1.5200 or thereabouts, but there is potentially a lot more in it.