With crude oil
price falling, I believe there is an opportunity to buy this pair. The pair is clearly in an uptrend if we look at the daily chart
. Price has created some good support and resistance
areas which have been tested and broken. As price action broke through the most recent area of support turned resistance, it's formed a parallel channel
to the downside. This has respected the trend line
acting as support and bounced off forming a morning star
. This is a strong reversal sign indicating a move upward.
Furthermore, we have some Stochastic
divergence where price is forming lower lows but contradicting higher lows are being formed on the indicator. Price has broken the parallel channel
on both the 1 hour and 4 hour charts.
Slightly risky has the current 4 hour candle has not closed.