My bias is that this pair is going long
Fundamental:
With the recent stimulus checks being pumped into the U.S. Economy, I believe that the value of the dollar will drop because the more dollars pumped into the economy equals a weakened currency.
Technical
On the 4hr chart, this pair is forming an inverted head & shoulders and once price breaks and retests the neckline it will give me clear confirmation that it is going up. I believe that price will go around the place where it last went when heading down. Which is about the 1.19300 area. From there it can continue to reach the next key level, which is where price also stopped in the past. But obviously I will wait for confirmation. Patience is key!
HOWEVER:
Price can do whatever it wants and if it decides not to break the neckline I think that it will break and retest the 1.1750 mid level-In quarter's theory- and go down to 1.1650 area, where price last stopped on its way up.
Confluences:
Break and retest of the neckline
Candlestick formation
EMA cross
Higher low
Fundamental:
With the recent stimulus checks being pumped into the U.S. Economy, I believe that the value of the dollar will drop because the more dollars pumped into the economy equals a weakened currency.
Technical
On the 4hr chart, this pair is forming an inverted head & shoulders and once price breaks and retests the neckline it will give me clear confirmation that it is going up. I believe that price will go around the place where it last went when heading down. Which is about the 1.19300 area. From there it can continue to reach the next key level, which is where price also stopped in the past. But obviously I will wait for confirmation. Patience is key!
HOWEVER:
Price can do whatever it wants and if it decides not to break the neckline I think that it will break and retest the 1.1750 mid level-In quarter's theory- and go down to 1.1650 area, where price last stopped on its way up.
Confluences:
Break and retest of the neckline
Candlestick formation
EMA cross
Higher low