We have been eyeing up this pair in our London live trading room this week as the market has come down to test previous structure lows on the daily chart.
As we have come down to that 127.00 even handle number you can see market has respected this level which is also at a 127 Fib extention of the previous move and put in a double bottom with RSI being over sold at 14 on the initial test and then we can see some bullish divergence on the RSI on the second test of structure.
For more conservative traders, you might be waiting for further confirmation. Well there is a potential 2618 trade setting up here. we have had a break and close above the double bottom retracement and now we are just waiting for a push back down into the Fib 618 before entering.
Comments
InsiderB
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Cheers Jason...You are ahead of Akil :)
Buythelow
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Jason, what is your opinion on double bottoms? I am asking because I see the second bottom as a new structure low (only by a few pips but still)? Doesn't this invalidate the DB, or is it still a clean DB with the close of the second test falling within the spikes of the initial test?
lazar123
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I'm with you on this, I thought the second bottom could not close below the body of the first bottom