So i will start by trying to analyze the technical position of the pair, defining the main technical key levels.
-We have been in a strong that started in early May, however recently after testing 1.2500 the price has managed to break the first tier falling , that usually hints a minor shift in behavior from strongly to sideways-bearish
-The price has managed to pullback towards the previously broken swing low at 1.2858 and created a new swing high at 1.2886 as shown on chart, before heading lower again.
-The pullback took the shape of a minor or a continuation pattern, and the price succeeded in the latest dip to break the support of that flag.
-However, the price found support at 1.2605 level, and is currently pulling back gradually higher.
-This overall behavior remains illustrative of a sideways to bias for me.
- The price is testing the broken now, so could find renewed downside pressures from here..The 50-days is also near 1.2850 level, therefore, it might be a good area to scalp quick short trades among 1.2800-1.2850. targeting retest of levels near 1.2605 for now, a break below 1.2605 clears the way for the latest major swing low at 1.2500.
-Any extension of the move should be limited below 1.3000 level, which is the main falling for the overall . A break with a daily closing above that resistance could have a implication.
- Do not forget that trading is about probabilities, trades will definitely work some times, and definitely fail some times, so its all about how you manage it and execute it with a clear consistent method,, its all about keeping your profits bigger than your losses.
Hope you enjoyed it. :)
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