Long term trend: Up
Medium term trend: Down
Significant Levels: 1.648 (Horizontal Resistance), 1.627 (Horizontal Support), Downtrend Line, Confluence Area
The medium term trend is down, but the price is currently at the trend line. It can be seen how the markets respected the Trend Line and is now forming a bit of consolidation. This will become interesting as the intersection of the Support and Trend Line is near. Even though the market is down, I'm looking for a possible Bullish signal that will occur at this intersection because this pair is recently gaining its momentum back to its Long term trend which is up. Just for me to be clear, I'm trading the Medium term trend, but is still considering the Long term one. In this case, I'm still Bullish with this pair even though it's currently down. There's no signal yet for me to put a trade, but if a Bullish signal presented itself, there's no reason that I'd not place a Long position. Of course, a Bearish signal is also possible here, but I'm not looking for that right now. And even if a signal for a decline in the market occurred, I will not place a trade right away (that would be another analysis).
See how the price will react on the Confluence Area, if it's Bullish, place your trade. If not, don't do anything.
Trade well.
Medium term trend: Down
Significant Levels: 1.648 (Horizontal Resistance), 1.627 (Horizontal Support), Downtrend Line, Confluence Area
The medium term trend is down, but the price is currently at the trend line. It can be seen how the markets respected the Trend Line and is now forming a bit of consolidation. This will become interesting as the intersection of the Support and Trend Line is near. Even though the market is down, I'm looking for a possible Bullish signal that will occur at this intersection because this pair is recently gaining its momentum back to its Long term trend which is up. Just for me to be clear, I'm trading the Medium term trend, but is still considering the Long term one. In this case, I'm still Bullish with this pair even though it's currently down. There's no signal yet for me to put a trade, but if a Bullish signal presented itself, there's no reason that I'd not place a Long position. Of course, a Bearish signal is also possible here, but I'm not looking for that right now. And even if a signal for a decline in the market occurred, I will not place a trade right away (that would be another analysis).
See how the price will react on the Confluence Area, if it's Bullish, place your trade. If not, don't do anything.
Trade well.