Price has cleared the Monthly pivot point and bounced nicely from
that level last week. Yesterday price broke above the H4 Cloud with
a bullish twist, creating a buy signal. At the same time clearing the
Flag pattern with a strong candle. Now we see price retesting the
cloud from above, as well as testing the daily pivot point, at the same
level. If price find support here, it is a good level to long the pair, using
the Ichimoku signal. This could be the end of the retracement.
If we see price plummet though the cloud and close below it, the signal
was false but even a close inside of the cloud, will warn bulls of a
deeper move down, to the bottom of the cloud and weekly pp as first
destination.
The red line shows the length of the pole, which gives the target of
the Flag pattern. This target stands around 1.2450 and aligns perfectly
with the long term, higher time frame support line (white line)
which connects the lows from June 2010 and July 2012 and which was
broken in Dec 2012. The June 2010 low stands at 1.1876 and has been
tested in late July 2017, at first acting as resistance.
For bulls the natural target from here is the Monthly R1 at
1.2020 and the Yearly R2 at 1.2092
that level last week. Yesterday price broke above the H4 Cloud with
a bullish twist, creating a buy signal. At the same time clearing the
Flag pattern with a strong candle. Now we see price retesting the
cloud from above, as well as testing the daily pivot point, at the same
level. If price find support here, it is a good level to long the pair, using
the Ichimoku signal. This could be the end of the retracement.
If we see price plummet though the cloud and close below it, the signal
was false but even a close inside of the cloud, will warn bulls of a
deeper move down, to the bottom of the cloud and weekly pp as first
destination.
The red line shows the length of the pole, which gives the target of
the Flag pattern. This target stands around 1.2450 and aligns perfectly
with the long term, higher time frame support line (white line)
which connects the lows from June 2010 and July 2012 and which was
broken in Dec 2012. The June 2010 low stands at 1.1876 and has been
tested in late July 2017, at first acting as resistance.
For bulls the natural target from here is the Monthly R1 at
1.2020 and the Yearly R2 at 1.2092