- Ascending support starting early 2016.
- 38.2 fib level, which has previously taken turns acting .
- median at around 0.7680, just above confluence.
- Price is currently consolidating at the median.
The following must occur to confirm entry:
- Price moves around/just below the median at 0.7680.
- Price does not break ascending support.
- Price does not break the psychological 0.7600 level.
- Near time price action indicates sentiment.
The price action zone we're focusing on for entry is between 0.7600 to 0.7680. The following is a possible trade management strategy for a long entry:
- Stop loss could possibly be set at the previous pitchfork's upper 1.0 median at around 0.7540.
- Initial target can be set at the 23.6 fib level.
- Secondary target could be set around the upper 0.5 median and the very important psychological 0.8000 price level.
- The final target, unless price bounces off the 0.8000 price level, could be set to the upper 1.0 median at around 0.8200.
We want to see determination in the price action from the market to confirm the trade. If however the price breaks both the ascending support and the 0.7600 psychological price level, we should see accelerated moves to the downside with the first support being the area around our stop loss. Keep in mind that most of the news coming out these couple of weeks is USD focused and if the market views the reports favorably, it could be the nudge that breaks support and invalidates this trade.
In any case, good luck out there and have fun.
- Upper resistance downtrend channel (dashed red)
- 100 EMA and 200 EMA
- On the 4h time frame we looked to be trading constructively in a ascending Pitchfork, yesterday we blew right through the upper 1.0 median.
It looks like we're on track for our first target. Be mindful of retracements after big moves.