Buy above 0.7484. Stop loss at 0.7457. Take profit at 0.7549.
Reason for the trading strategy (technically):
Price has made a bullish exit from a short term triangle formation. We remain bullish looking to buy on dips above 0.7484 support (Fibonacci retracement, horizontal overlap support) for a further push up towards 0.7549 resistance (Fibonacci extension, horizontal swing high resistance). We move our stop loss to 0.7457 to protect our profits.
RSI (34) sees good support above 45% and also a bullish exit of a recent descending resistance-turned-support line signalling that a rise is impending.
Correlation analysis: We are expecting commodities strength with AUDUSD and NZDUSD both seeing bounces.
Reason for the trading strategy (technically):
Price has made a bullish exit from a short term triangle formation. We remain bullish looking to buy on dips above 0.7484 support (Fibonacci retracement, horizontal overlap support) for a further push up towards 0.7549 resistance (Fibonacci extension, horizontal swing high resistance). We move our stop loss to 0.7457 to protect our profits.
RSI (34) sees good support above 45% and also a bullish exit of a recent descending resistance-turned-support line signalling that a rise is impending.
Correlation analysis: We are expecting commodities strength with AUDUSD and NZDUSD both seeing bounces.