While the daily chart on the pair does not show any signs of the direction of the pair, dissecting it into 4 hours time frame gives a beautiful price action.
The pink rectangle shows a potential reversal area of the pair going back to June of 2013. This may probably give us a chance to keep looking at the pair, what gives us a little more reason to take a position for the bull run in the pair is the price action.
The purple lines at the top and bottom of the consolidation shows that the prices have made higher highs and higher lows indicating the sellers are getting stopped in their tracks.
The price action has also entered the reversal area quite a few times. What's special about this part is every time the pair has entered the area, a huge bull bar has brought the pair up and the pair hasn't been able to make a lower low following the bull candle and also, currently the pair is resting outside the reversal zone.
What more? Taking a look at the price action inside the eclipsed area, the first circle has a 1hr bull candle which has kicked out nearly 18 hrs of consolidation on the pair. The bears have been unable to beat this candle with the pair requiring nearly 9 hrs to trace back 100% of this move making a double bottom in the reversal zone.
After the consolidation, the pair has slowly made it's way outside the reversal area and once the pair made it out, we again see a large bull candle with two more smaller ones following it. Now this is just 3 hrs of price action and the pair has taken 10 hrs of price action following this to trace about 90% which doesn't bring it back into the reversal area.
What this price action tells us is that the bears are being absorbed by the bulls at higher prices in the market struggling to make a way back down and the bulls are already buying out the pair at higher prices.
The double bottom and the following two higher lows may actually tell us that the pair is almost in its last stage of consolidation before heading up.
Probably a good place to catch the most of the bull run.
The pink rectangle shows a potential reversal area of the pair going back to June of 2013. This may probably give us a chance to keep looking at the pair, what gives us a little more reason to take a position for the bull run in the pair is the price action.
The purple lines at the top and bottom of the consolidation shows that the prices have made higher highs and higher lows indicating the sellers are getting stopped in their tracks.
The price action has also entered the reversal area quite a few times. What's special about this part is every time the pair has entered the area, a huge bull bar has brought the pair up and the pair hasn't been able to make a lower low following the bull candle and also, currently the pair is resting outside the reversal zone.
What more? Taking a look at the price action inside the eclipsed area, the first circle has a 1hr bull candle which has kicked out nearly 18 hrs of consolidation on the pair. The bears have been unable to beat this candle with the pair requiring nearly 9 hrs to trace back 100% of this move making a double bottom in the reversal zone.
After the consolidation, the pair has slowly made it's way outside the reversal area and once the pair made it out, we again see a large bull candle with two more smaller ones following it. Now this is just 3 hrs of price action and the pair has taken 10 hrs of price action following this to trace about 90% which doesn't bring it back into the reversal area.
What this price action tells us is that the bears are being absorbed by the bulls at higher prices in the market struggling to make a way back down and the bulls are already buying out the pair at higher prices.
The double bottom and the following two higher lows may actually tell us that the pair is almost in its last stage of consolidation before heading up.
Probably a good place to catch the most of the bull run.