The pair has moved harmoniously upward since the beginning of the month,
with a pullback to the new weekly pivot point before heading higher. This has
given us some great trading opportunities. This smooth ride is more typical
of a trending pair than a rangeing, so we might have to regard
the bullish trend on weekly timeframe as legit and use it for guidance on lower
timeframes.
As i have stated in previous posts, the Monthly R1 was the near term target which
has been hit overnight. I have booked profit myself and is currently waiting for
clues on the next move (as I have traded the daily timeframe and not the weekly.
On the weekly timeframe (and monthly) the target stands by the Yearly R2 at 1.2091.
On the daily timeframe; IF we see a close above the Monthly R1 at 1.1535, it will open
up for a move to the Monthly R2 at 1.1653 (another 100 pips leap). Before that there
is a reaction high, marked with the dotted line at 1.1616, which also may give some
initial resistance.
IF price fail to breach the Monthly R1 at this point, we might be looking at a shorter
bounce to the Weekly R1, which could give an opportunity to long the pair again on lower
timeframe, targeting weekly R2 at 1.1560, or hold on to it, hoping for a move to the
Monthly R2.
Horizontal support stands at 1.1470 ish and 1.1395 (Weekly S1)
ANY close below weekly S1 will warn of a deeper correction though. To countertrade from this
level is in my opinion a low probability trade, thus not desirable, considering the strong
momentum. After all, we had almost two weeks of a narrow sideways move of 100 pips,
which may have built up much more energy for further upside. If price establish itself
above Monthly R1, it will fall in line with the current position above Yearly R1, and the
bullish trend will become stronger, with clearer direction.
with a pullback to the new weekly pivot point before heading higher. This has
given us some great trading opportunities. This smooth ride is more typical
of a trending pair than a rangeing, so we might have to regard
the bullish trend on weekly timeframe as legit and use it for guidance on lower
timeframes.
As i have stated in previous posts, the Monthly R1 was the near term target which
has been hit overnight. I have booked profit myself and is currently waiting for
clues on the next move (as I have traded the daily timeframe and not the weekly.
On the weekly timeframe (and monthly) the target stands by the Yearly R2 at 1.2091.
On the daily timeframe; IF we see a close above the Monthly R1 at 1.1535, it will open
up for a move to the Monthly R2 at 1.1653 (another 100 pips leap). Before that there
is a reaction high, marked with the dotted line at 1.1616, which also may give some
initial resistance.
IF price fail to breach the Monthly R1 at this point, we might be looking at a shorter
bounce to the Weekly R1, which could give an opportunity to long the pair again on lower
timeframe, targeting weekly R2 at 1.1560, or hold on to it, hoping for a move to the
Monthly R2.
Horizontal support stands at 1.1470 ish and 1.1395 (Weekly S1)
ANY close below weekly S1 will warn of a deeper correction though. To countertrade from this
level is in my opinion a low probability trade, thus not desirable, considering the strong
momentum. After all, we had almost two weeks of a narrow sideways move of 100 pips,
which may have built up much more energy for further upside. If price establish itself
above Monthly R1, it will fall in line with the current position above Yearly R1, and the
bullish trend will become stronger, with clearer direction.