The reaction to the NFP data last week invalidated my previous short setup on this pair so I started with a clean slate today... I used only simple structure, patterns and trendlines for this one. I have to mention that I am currently still short on this pair with a small position (from 0.9820, SL @ BE) based on a previous idea of mine.
The possible flag-like pattern which we see in the 4H chart on the left could suggest a possible break to the upside and on to continuation of the uptrend that is in place since August 24th (and earlier if we look at higher timeframes). A possible "up" breakout could be short-lived if it gets stopped (or paused...) at the above trendline. If we get above that trendline, I will be looking to enter long for a possible longer run up, at that time I would be stopped out on my current short position...
However, if we break the current trendline within the flag pattern which is shown on the 1H chart on the right, we could be on our way to re-test that lower-lying "up" trendline. From there-on it's wait-and-see if that trendline holds or not. I am of course hoping for such an outcome because of my current short position...
No actual trades defined here, I just added some alerts to the trendlines to possibly catch a breakout when it happens.
The possible flag-like pattern which we see in the 4H chart on the left could suggest a possible break to the upside and on to continuation of the uptrend that is in place since August 24th (and earlier if we look at higher timeframes). A possible "up" breakout could be short-lived if it gets stopped (or paused...) at the above trendline. If we get above that trendline, I will be looking to enter long for a possible longer run up, at that time I would be stopped out on my current short position...
However, if we break the current trendline within the flag pattern which is shown on the 1H chart on the right, we could be on our way to re-test that lower-lying "up" trendline. From there-on it's wait-and-see if that trendline holds or not. I am of course hoping for such an outcome because of my current short position...
No actual trades defined here, I just added some alerts to the trendlines to possibly catch a breakout when it happens.
