Consolidation over the last couple of weeks, after an impressive breakout from the previous trend, appears to have created a tidy flag formation within a neat channel.
Price is now intercepting the meeting point of the 50EMA and the Support at the bottom of the Channel. This is the third time price appears to be reacting to this support and a reversal Candlestick here would signal a great long entry to the upside of the Channel. This level is also right above the 0.382 Fib Retracement level so a low test on the Channel, 50EMA and through the 0.382 level would really kick off the bullish movement with a future Bullish trend continuation breakout to retest the 2.1000 resistance level being likely.
Correlation with the GBP/USD also shows promising long potential as highlighted in the linked post -
Price is now intercepting the meeting point of the 50EMA and the Support at the bottom of the Channel. This is the third time price appears to be reacting to this support and a reversal Candlestick here would signal a great long entry to the upside of the Channel. This level is also right above the 0.382 Fib Retracement level so a low test on the Channel, 50EMA and through the 0.382 level would really kick off the bullish movement with a future Bullish trend continuation breakout to retest the 2.1000 resistance level being likely.
Correlation with the GBP/USD also shows promising long potential as highlighted in the linked post -
