As is seen on the chart we are able to observe that in the long term the Pair is on an uptrend cannel (red lines), but since the end of 2013 (First red arrow) the price was unable to keep going higher, and in the next two attempts didn´t make further progress (two final arrows), indicating the shortening of the up thrust, and the presence of offers around the zone of 1.39400 – 1.3900 creating an important resistance zone.
Moreover, the chart shows the inability to respect the uptrend line and break down with relative strength, after that went to the previous support zone around 1.3480.
At this point the price on the long term fits into a wide channel, which is mark between the blue dotted lines, for these reasons we recommend.
- Be aware of the price action above the support zone in order to take a long trade only if the price gives bullish signals.
- If the price is unable to hold the support then wait until the price retest, this zone in order to get short, only if the price gives bearish signals.
I hope you like.