We posted on for the first time on Sunday explaining that price had broken out of long term consolidation and was trending nicely towards the major resistance level of 5.0000.
It is at these levels where many would enter short positions trying to pick tops. It is a difficult and inconsistent approach as it involves guess work which often leads to losses. If stops are not being used then this is a hair raising journey that leads to blown accounts.
The smarter approach, and a proven approach, is to apply patience and wait for the trend to break through resistance and close above ( at the end of the trading day) for the resistance to be confirmed as support.
This is the setup we were waiting for as highlighted on our previous post on and our patience has now been rewarded. Price broke and closed above 5.000 at the close of play on Monday.
This is now offering an entry point to go long for the more aggressive trader.
However, given that this is new territory for this currency, the more conservative trader will wait for a trend to be confirmed above this new key support level before placing long trades.
We would now like to see price hold above this level and move towards 6.0000 offering opportunities to compound along its ascent.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!