Similar to USDJPY, let's look at the monthly and weekly candles since these have just closed. Monthly candle wise we can see a very bullish candle, but at the same time, market hit a strong resistance of mine last month and pulled back, and is forming what could be a bearish divergence on monthly (which is a very strong signal). Weekly wise, similar bearish divergence on weekly, and market did sell off last week, only for a late week rally to close the week with what looked like a doji. Also price is tagging the top of the Bollinger Band. Does doji means we will have an up week this week?
Ok daily price action, based on Friday's bullish close seem to indicate further upside and I think we can also see what could be a bull flag for another leg up. That is, UNLESS, the high is already given on Friday. That is, market will sell down today below OP. Also, look the zones given in the chart; we can see that price is sorta still in an uptrend with all the zones below supporting. But probably a main thing to look for any reversal is the daily BZ. Below BZ and OP (1.2683), market could move go down with the highs in place. Having said so much, so what's my point?
Overall, I think there are signs of a reversal down coming, but that would require further confirmation. For now, how I will possibly trade today would be, currently price is above the PZ. Price looked to have based, can try a long to target Friday's high. Also look for possible failure and try a short at 1.27170 for a move to 1.2700 and 1.2662 where we should see a bounce. If market trades to 1.2775, look for a short for a move to 1.2717. That's what I see for now, anything else I will update in the group.
Ok daily price action, based on Friday's bullish close seem to indicate further upside and I think we can also see what could be a bull flag for another leg up. That is, UNLESS, the high is already given on Friday. That is, market will sell down today below OP. Also, look the zones given in the chart; we can see that price is sorta still in an uptrend with all the zones below supporting. But probably a main thing to look for any reversal is the daily BZ. Below BZ and OP (1.2683), market could move go down with the highs in place. Having said so much, so what's my point?
Overall, I think there are signs of a reversal down coming, but that would require further confirmation. For now, how I will possibly trade today would be, currently price is above the PZ. Price looked to have based, can try a long to target Friday's high. Also look for possible failure and try a short at 1.27170 for a move to 1.2700 and 1.2662 where we should see a bounce. If market trades to 1.2775, look for a short for a move to 1.2717. That's what I see for now, anything else I will update in the group.
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