Top-Down Technical Analysis: (Similar to GBP/JPY)
The monthly time frame shows a strong bullish signal as it is sitting on a very strong newly created support
Weekly also is bullish biased rather than bearish as this week's candle broke the high of last week's doji (indecision) candle high and never broke the low
Coming to the daily time frame we can clearly see how the trend has switched from bearish to bullish as soon as we formed a double bottom and broke the previous lower high formed
Now as we created a new high, price should come and retrace at a certain level thus creating a new support (new higher low) to continue its bullish movement
By looking at the 4-Hour time frame, we can clearly see how we broke the resistance held at 1.80500 area, so now we are waiting for price to come down and retrace that area creating a new support-turned resistance to continue the bullish momentum till our target profit area.
Target Profit: Purple zone at 1.84000
*Keep in mind that fundamental analysis may disrupt price action at any given time, specially with sudden news being announced and creating a new sentiment in the market.
The monthly time frame shows a strong bullish signal as it is sitting on a very strong newly created support
Weekly also is bullish biased rather than bearish as this week's candle broke the high of last week's doji (indecision) candle high and never broke the low
Coming to the daily time frame we can clearly see how the trend has switched from bearish to bullish as soon as we formed a double bottom and broke the previous lower high formed
Now as we created a new high, price should come and retrace at a certain level thus creating a new support (new higher low) to continue its bullish movement
By looking at the 4-Hour time frame, we can clearly see how we broke the resistance held at 1.80500 area, so now we are waiting for price to come down and retrace that area creating a new support-turned resistance to continue the bullish momentum till our target profit area.
Target Profit: Purple zone at 1.84000
*Keep in mind that fundamental analysis may disrupt price action at any given time, specially with sudden news being announced and creating a new sentiment in the market.