A new LH (weekly) was recently formed and last week's weekly candle closed as a decent size doji. There is clear indecision on this pair as it leaks and bleeds toward 130.70. Moving to the daily, sellers have definitely slowed down and this pair is seeing a near complete deceleration in price. Friday's candle closed as a symbol of a possibly bullish push to come, 50 pips of seller exhaustion and roughly 10 pips of bullish pressure (not quite momentum yet).
Jumping down to the 4H we see that price is steady on a bearish leg and has been moving sideways for roughly 2.5 days since the last significant LH. We have 2 main scenarios, a break of demand followed by a retest to go short or a break of last resistance/LH representing a possible BOS (break of structure) followed by a retest of that resistance/supply to go long.
Short targets stand at 130.70 while going long suggests a push back to 135.00
Jumping down to the 4H we see that price is steady on a bearish leg and has been moving sideways for roughly 2.5 days since the last significant LH. We have 2 main scenarios, a break of demand followed by a retest to go short or a break of last resistance/LH representing a possible BOS (break of structure) followed by a retest of that resistance/supply to go long.
Short targets stand at 130.70 while going long suggests a push back to 135.00
Comment:
Bullish day to start the week however a generous wick at the top is telling us that sellers are present and this may not be an easy battle. This is the first definitive bullish day in awhile for the pair. Keep in mind key Brexit news drops by week end. Before I take any positions I still need to let GJ choose a direction.