The Stack shows us the bias is . You'll notice the flattening DPMA 14 Day which could rollover and cross the DPMA 30 Day, a signal. Hence, we will want to place an entry stop order on the breakdown of the to go short. This will allow a confirmation of the move down and a more conservative way to enter the short side.
Secondly, you could enter the market long right here at about 1.3040 and place a close stop loss just under the of 1.2997. In addition, you could place a reversal stop loss order at this same level to exit your long and then go short. Your risk is 40 pips with good potential to the upside or downside depending on how it plays out.
Important to understand:
The new MPR was released today as you can see, the price is sitting right on top of the MPR range and . The MPR is very narrow: 1.3043 / 1.3042, which is rare to be so tight, and this is long term , which means it is more significant as support or resistance than the shorter term indicators.
Either direction this decides to go, the move will likely be swift with strong momentum. The price tends to move fast off this type of levels (MPR), and why I call it a blast off launching pad scenario.
In this particular setup we have all other above the current MPR levels, which means the near term bias is . But with the price right in the middle MPR, we don’t really know which direction this will go until it breaks out/off of the MPR level.
If the price decides to take off to the upside it could easily ignore all other resistance levels and move like a rocket. If this occurs, keep an eye on the top of the Stack, around 1.3117 as this is near the high of the previous session and the high of the 6 Day RPR...it’s a key where the price could fail to move above.
But again, I would bet on the price rallying through this level on a blast off trade ( aka Justice trade). Watch the momentum and speed that the price moves. This would be an important factor in determining whether or not to add to the long position. If you get long, look to add to the position just above the resistance, maybe 1.3120, to pyramid your position.
*See the Legend below for the Indicator Guide*
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Daily Range-DPR (blue/magenta dots) | Weekly Range-WPR (orange/red dots) | Monthly Range-MPR (green/black dots)
6 Day Rolling Range-RPR (lime/yellow dots)
Daily Moving Averages-DPMA: red=14 day, yellow=30 day, white=50 day