Since then we see price consolidating in a symmetrical triangle near the weekly 111 area.
I have developed multiple scenarios for this pair.
In my opinion it could still retest the 4h support (Pink Line) before making a charge to the 118 area.
Friday closed with a textbook exhaustion candle on the 4H at a short term resistance and could signal a profit taking pull back to the 114.5 area and perhaps a longer term 113.3
2. Price could make a run for the 117 and pull back to either 114 or 113.6 areas
3. Just like 2. a break out could occur but price could just as well retest the inner and make a run for the 118 area.
This is how I plan to trade this pair:
- I shall have a buy limit at 113.7, first target the Inner and 2nd target the 115 area.
- Depending on the R/R ratio a buy order will be placed above the 116.3 congestion with the first target the major (outer line) and second target 118.
- Depending on the Monday close, should a signal print, A sell stop will be placed below the close of that candle with a first target the pink line and a long term target @ the bottom of the triangle.
Overall I like to be prepared for all scenarios and see this pair as the Money maker of the month.