2 simple scenarios here, the first one is the black line at 0.7316 should act as resistance as it has previously done many times as shown by the blue cirlces. I have set an order to go short with a stop loss at 0.7352 (214 pips) and a take profit at 0.6843 (474 pips) which has acted as support for sometime.
The second scenario will be a break out situation where the price breaks the resistance. If this happens I will again wait for a pull back to the black line before setting an order to go long. Usually in a break out situation the previous resistance acts as support and this is what I will look to trade if that happens.
This trade should easily take a few months to complete.
The second scenario will be a break out situation where the price breaks the resistance. If this happens I will again wait for a pull back to the black line before setting an order to go long. Usually in a break out situation the previous resistance acts as support and this is what I will look to trade if that happens.
This trade should easily take a few months to complete.